Goldman Sachs said Monday that six private lawsuits alleging "breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment" have been filed against the bank since the government charged it last month with committing fraud.Read the rest here
The rare announcement, in the form of a regulatory filing, underscores the widening legal assault that Goldman is facing as well as the firm's increasing sensitivity about telling investors any information that might be deemed pertinent.
The issue of disclosure is at the center of the Securities and Exchange Commission's civil fraud suit against the company. The SEC alleges that Goldman failed to tell clients looking to invest in the housing market important details about an investment opportunity the bank was touting, known as collateralized debt obligation. Goldman denies wrongdoing.
The private suits might not be the end of Goldman's legal challenges. Goldman said in its filing Monday that it expects more "regulatory and other investigations and actions commenced, with respect to offerings of collateralized debt obligations."
In addition, law enforcement sources said last week that the Justice Department is conducting a criminal investigation of Goldman's mortgage business. The sources, who spoke on the condition of anonymity, described the probe as preliminary.
GoldmanSachs666 Message Board
According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage". In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia
Tuesday, May 4, 2010
More bad news for Goldman. Looks like they have their own oil spill heading their way.