It is widely reported that U.S. prosecutors are looking into the mortgage trading activities of Goldman Sachs Group and its employees. The New York Times and The Wall Street Journal reported on April 30 that the SEC had referred civil fraud charges that the agency had brought against Goldman Sachs on April 16 to the U.S. prosecutor.
Goldman Sachs Group Spokesperson Michael DuVally provided this statement to WealthManagerWeb.com via e-mail: "Given the recent focus on the firm, we are not surprised by the report of an inquiry. We would fully cooperate with any requests for information."
The SEC charged Goldman Sachs & Co. (GS&Co), and an employee, Fabrice Tourre, with fraud on April 16, "for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation ("CDO") GS&Co structured and marketed to investors," according to the SEC complaint. The SEC demanded a jury trial in this case.
