Goldman Sachs has been ordered to pay $20.58m to creditors of a failed hedge fund to settle claims that the bank helped the fund perpetrate a Ponzi scheme. The award represents the first time that a bank has been held accountable for a Ponzi scheme because of its role as a middleman. Goldman cleared trades and lent money to the Bayou Group, a Connecticut hedge fund that collapsed in 2005, when state and federal investigators said the firm defrauded investors of hundreds of millions of dollars.
Goldman told to pay creditors in Bayou scam
Most Popular Articles
Latest Articles
Indiana senator explains his inquiries into reverse mortgages
Sen. Mike Braun offered insights into his recent letter to Ginnie Mae and the potential need for more scrutiny of the HECM and HMBS programs.