A&O and Sullivan bag key roles in Goldman fraud case
Allen & Overy (A&O) and Sullivan & Cromwell will play key roles when Goldman Sachs defends fraud allegations brought by the Securities and Exchange Commission (SEC).
Pamela Chepiga
Sullivan & Cromwell is representing Goldman Sachs, while A&O New York partner Pamela Chepiga is representing Fabrice Tourre, the Goldman trader also named as a defendant in the civil suit.
Chepiga is a former chief of the securities and commodities frauds unit at the state attorney’s office in the Southern District of New York, where she coordinated criminal prosecutions with the SEC.
Sullivan & Cromwell partners Richard Klapper and Rodgin Cohen are expected to take lead roles in representing Goldman, with whom the firm has a long-term relationship.
Goldman is accused of two counts of misleading investors over the level of risk involved in a synthetic collateralised debt obligation (CDO) transaction that took place before the collapse of the sub-prime mortgage market.
It is alleged that Goldman did not disclose that hedge fund Paulson & Co, which took a short position in the portfolio, played a major role in putting it together.
Goldman denies the allegations. In a statement released on Friday it said: “We’re disappointed that the SEC would bring this action related to a single transaction in the face of an extensive record which establishes that the accusations are unfounded in law and fact.”
The company said it lost more than $90m (£58.41m) in the transaction and argued that extensive disclosure was provided by German bank IKB.
Readers' comments (1)
Betrand Frost | 19-Apr-2010 12:51 pm
Written in 2009, to the postman pat tune
Goldman Sachs, Goldman Sachs, Goldman Sachs, And their pots of cash
Early every morning, usually with no warning, they pick their bets while our savings go down the pan
Goldman Sachs, Goldman Sachs, Goldman Sachs, And their pots of cash
All the bankers singing, more profits while engineering, their bonus pools guaranteed by the tax man
Everybody knows their divine right to cash, as their work is Gods’ don’t you know
Maybe, one day, they’ll be judged before the law, there’ll be a knock (knock knock), ring (ring ring), writs through the door (hee hee)
Goldman Sachs, Goldman Sachs, Goldman Sachs, And their pots of cash
Screwing all the world now, treating it as a cash cow, whilst we all die for lack of fair health care.
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