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Goldman Sachs SEC Fraud Charges: LIVE Updates, Breaking News

First Posted: 06/16/10 06:12 AM ET   Updated: 05/25/11 05:10 PM ET

The Goldman Sachs SEC fraud charges are creating quite a stir across the financial sector.

Per the AP, the government has accused Goldman Sachs of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.

Follow LIVE updates and the latest breaking news about the Goldman Sachs charges on this page.

**Scroll down for the Goldman Sachs stock chart and the latest tweets.**

Abacus 2007-AC1
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The lawsuit is centered around the financial instrument Abacus 2007-AC1, a complex package of securities derived from low-quality mortgage bonds. The bundle was created at Goldman Sachs in February 2007 and marketed to Goldman clients, but according to the SEC, Goldman and some other clients (including billionaire hedge-fund manager John Paulson) simultaneously bought insurance on the risky product. Meanwhile, Goldman allegedly told potential investors that the bonds in the instrument would be chosen by an independent portfolio manager, never mentioning that they were actually picked by Paulson, who had a strong interest in the product's failure.

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Filed by Craig Kanalley  |