Bayou creditors sue Goldman Sachs for $20M

The ex-Stamford, Conn.-based hedge fund managed by Samuel Israel defrauded investors out of $300 million.
JUL 18, 2008
By  Bloomberg
Creditors of Bayou Management LLC, run by former fugitive from justice Samuel Israel III, have sued Goldman Sachs Group Inc. for $20 million, according to a report in The New York Times. The Stamford, Conn.-based hedge fund defrauded investors out of $300 million. New York-based Goldman was responsible for taking custody of securities and providing reports on Bayou’s investments. The suit was filed as a private arbitration case in federal court in May, weeks before Mr. Israel faked his own suicide and fled. He later turned himself into the authorities. It claims that Goldman provided monthly statements to Bayou outlining its losses — more than $88 million between August 1999 and August 2005 — but that Goldman knew that Bayou was reporting significant gains to investors. Calls to Goldman were not returned.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.