Goldman Sachs executive Fabrice Tourre has denied acting improperly in regard to the controversial Abacus collateralized debt obligation (CDO) product.Fabrice TourreLast week, the bank agreed to pay out $550 million after the Securities and Exchange Commission (SEC) accused it of misleading investors by not informing them that hedge fund Paulson & Co – which helped make the CDO – was betting on its failure.The SEC said it would continue its case against Mr Tourre, who is said to have helped design the product.But lawyers acting on his behalf have questioned for the civil fraud charges against him to be dropped, reports Reuters.”The purported claims against Mr Tourre are based solely on alleged actions and omissions concerning information known to many different Goldman Sachs employees working in various aspects of its business,” his legal team said.Goldman Sachs has not admitted or denied the SEC’s claims, but did state that it regrets that marketing materials for the CDO did not tell Paulson’s involvement.
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Fabrice Tourre denies fraud allegations
July 20th, 2010 
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Posted in Finance Fraud 
Tags: Acting, Amp, Civil Fraud, Collateralized Debt Obligation, Failure, Fraud Allegations, Fraud Charges, Goldman Sachs, Hedge Fund, Lawyers, Marketing Materials, Misleading Investors, Regard, Reuters, Securities And Exchange, Securities And Exchange Commission 
Comments OffGoldman Settles With SEC
July 16th, 2010 Before You Invest “Today’s settlement sends positive message of deterrence and accountability,” said the SEC’s director of enforcement, Robert Khuzami.Goldman Sachs agreed to pay $550 million to settle civil charges that it duped clients by selling mortgage securities that were secretly designed by a hedge-fund firm to cash in on the housing market’s collapse.Goldman agreed to pay $550 million to resolve allegations that the company misled investors who bought subprime mortgage-related securities made by Goldman.
Posted in Finance Fraud Tags: Accountability, Allegations, Civil Charges, Collapse, Columbia University, Concession, Defendant, Deterrence, Disclosure, Goldman Sachs, Hedge Fund, Housing Market, John Coffee, Law Professor, Marketing Materials, Mortgage Securities, Robert Khuzami, Securities Law, Wall Street, Wrongdoing Comments OffCitigroup fined $650,000 by FINRA
April 8th, 2010 Before You Invest Citigroup has received a fine of $650,000 for violations made in the operation of its Direct Borrowing Program (DBP). The Financial Industry Regulatory Authority (FINRA) imposed the penalty on the investment bank for failures in disclosure and supervision relating to ‘hard-to-borrow’ securities. An investigation by FINRA found that Citigroup’s DBP borrowed over 770 securities from over 2,300 clients which were used in the group’s small selling strategy.
Posted in Finance Fraud Tags: Brokerage Firms, Citigroup, Dbp, Disclosure, Disclosures, Duration, Executive Director, Executive Vice, Financial Industry Regulatory Authority, Finra, Investment Bank, January 1st, Lent, Marketing Materials, Supervision, Supervisory System, Vice President Comments OffFINRA Settles ARS Complaint With Four Firms
May 8th, 2009 Before You Invest The Financial Industry Regulatory Authority (FINRA) announced today that it has entered into final settlements with four additional firms to settle charges relating to the sale of Auction Rate Securities (ARS) that became illiquid when auctions froze in February 2008. To date, FINRA has concluded final settlements with nine firms, imposing a total of $2.6 million in fines and guaranteeing the return of more than $1.2 billion to investors.
Posted in Finance Fraud Tags: Advertising Marketing, Auction Rate, Financial Advisors Inc, Financial Industry Regulatory Authority, Finra, Full Disclosure, Internal Communications, Investment Services Inc, Investments Inc, Janney Montgomery Scott, Janney Montgomery Scott Llc, Liquidity Risks, Marketing Materials, Natcity Investments, Securities Inc, Sound Basis, Suntrust Investment, Suntrust Robinson Humphrey, Top Priority, Using Advertising No Comments »Cheap Utah Car Insurance
