Top SEC Man Joins Goldman Case

May 19 2010 | 10:42am ET

The Securities and Exchange Commission is bringing out the big guns in its battle with Goldman Sachs.

The regulator’s deputy director of enforcement, Lorin Reisner, has joined its team in the case. The SEC accuses Goldman of misleading investors in a collateralized debt obligation that it allegedly structured and marketed on behalf of hedge fund Paulson & Co.

Reisner filed a “notice of appearance” in Manhattan federal court, saying he will participate in the case.

According to the SEC, Paulson played a role in selecting the residential mortgage-backed securities that went into the CDO, called ABACAS-2007-AC1, and then shorted the vehicle, buying credit default swaps from Goldman itself. But Goldman failed to inform the investors in the CDO, the SEC alleges.

Goldman has denied any wrongdoing, although it is reportedly seeking to settle the charges. Paulson has not been accused of any wrongdoing.

Reisner joined the SEC from law firm Debevoise & Plimpton. He spent four years as an assistant U.S. attorney in New York in the early 1990s.

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