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
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