Paulson Goldman Sachs Fraud Case
John Paulson Reassures Investors On Goldman Sachs CasePaulson & Co. worked to allay investors' concerns over the hedge fund's involvement in the Goldman Sachs fraud case. Although Paulson & Co. is not being charged with fraud, the SEC has charged that Goldman Sachs defrauded investors by not telling them that Paulson was betting against a subprime debt product. The hedge fund is trying to reassure investors that the lawsuit does not directly involve Paulson & Co. and that it did not act unlawfully.
Paulson, in a conference call on Monday and followed up with a letter to investors late on Tuesday, says neither he nor anyone else at the firm had received a so-called Wells notice indicating that charges might be filed against the fund, several investors who listened to the call said.
No one had yet notified the $32 billion fund of their intentions to pull money out, they said.
"We are interested in buying out people who want to get out of Paulson, but so far no one has stepped forward," one of the investors, who asked not to be named because of the sensitivity of the matter, said late on Tuesday.
A spokesman at Paulson & Co, which earned $15 billion by correctly betting in 2007 that the U.S. housing market would collapse, declined to comment. Source
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