Goldman Whistleblower Calls For Down Under Probe

May 20 2010 | 2:11pm ET

A former independent director of an Australian hedge fund that collapsed in the wake of its investment in a Goldman Sachs collateralized debt obligation has called on authorities in that country to launch an investigation into the investment bank.

David Mapley, a former director of Basis Capital Management’s Yield Alpha Fund, approached the U.S. Securities and Exchange Commission about the Timberwolf CDO, which cost Basis US$56 million, in 2008, two years before the regulator brought its fraud lawsuit against Goldman over a different CDO. Now, he’s calling on the Australian Securities & Investments Commission to launch a probe of its own.

“I don’t know if the regulator in Australia is looking at this trade but they certainly should,” Mapley told The Australian. “Goldman Sachs JBWere were a part of the selling process and there were a lot of Australian investors who were caught.”

Goldman is reportedly in settlement talks with Basis. A Goldman executive had referred to the Timberwolf CDO, which Basis invested US$100 million, as “one shitty deal.” Another called it a deal that “will live in infamy.”


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note