It is interesting to find out the results of suits that have been filed against Goldman Sachs. Basis Yield Alpha (Cayman Islands) bought $100 million of highly rated securities in June 2007 which became worthless a few months later. The case Basis brought against Goldman Sachs was dismissed by Judge Barbara Jones because the purchase of sale did not take place in the U.S., a provision cited in a 2010 U.S. Supreme Court decision.
Does that mean that fraudulent statements may be made in New York but if a purchase of fraudulent securities takes place elsewhere, the suit cannot go on? Timberwolf is the security bought by Basis and also happens to be one of the securities the Levin/Coburn report cited, by quoting GS itself, as "one shitty deal."
So Goldman Sachs can be found committing fraud only as long as it is in the United States! How convenient is that?
Read the story here
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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