BUSINESS

Goldman Sachs' 'Fraud' Explained: How They Pulled Off The Alleged Scheme

06/16/2010 05:12 am ET | Updated May 25, 2011

Goldman Sachs defrauded investors by failing to disclose a conflict of interest on mortgage investments it sold as the housing market went sour, according to the civil complaint filed by the Securities and Exchange Commission on Friday.

Goldman allegedly failed to disclose to investors that it was betting against subprime mortgage investments it pushed on clients. Essentially, according to the complaint, Goldman pushed a product designed to fail.

How did Goldman do that? We broke down the case step-by-step. Check it out:

Anatomy Of Goldman Sachs Fraud Allegations
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