Whistle-blower suggests similar Australian action
(18 May 2010 – Australia) David Mapley has said that Australia’s corporate watchdog should follow the action taken against the US arm of Goldman Sachs by the US Securities and Exchange Commission in suing the investment bank for fraud.
Mr Mapley, whistle blower behind the US law suit and former non-executive director of the local Basis Yield Alpha Fund, has said that ASIC should examine the role of Goldman Sachs JBWere’s Australian arm and its marketing of a mortgage-related investment product that resulted in the fund’s downfall in August 2007, The Australian newspaper reported.
I don't know if the regulator in Australia is looking at this trade but they certainly should, Mr Mapley told the Australian newspaper.
Goldman Sachs JBWere was a part of the selling process and there were a lot of Australian investors who were caught. ASIC should be encouraged to look into this trade, Mr Mapley added.
Mr Mapley was referring to the fund's purchase of a collateralised debt obligation called Timberwolf, which collapsed in value due to the housing crisis. The result was a flow on effect for Basis Capital forcing them to tip the fund, which it had invested about A$100 million in the issue, into liquidation.
Mr Mapley said that in the Timberwolf case he and a colleague examined the trade and had a strong belief that that the security was fraudulently concocted and then sold to them.
The SEC was very much interested and I would be very happy to assist them further if requested, Mr Mapley highlighted.
Mr Mapley and another non-executive director, US-based Zahid Ullah, stood down from the board last year, following disagreements with liquidators on the best course of action.
I don't know if the regulator in Australia is looking at this trade but they certainly should, Mr Mapley told the Australian newspaper.
Goldman Sachs JBWere was a part of the selling process and there were a lot of Australian investors who were caught. ASIC should be encouraged to look into this trade, Mr Mapley added.
Mr Mapley was referring to the fund's purchase of a collateralised debt obligation called Timberwolf, which collapsed in value due to the housing crisis. The result was a flow on effect for Basis Capital forcing them to tip the fund, which it had invested about A$100 million in the issue, into liquidation.
Mr Mapley said that in the Timberwolf case he and a colleague examined the trade and had a strong belief that that the security was fraudulently concocted and then sold to them.
The SEC was very much interested and I would be very happy to assist them further if requested, Mr Mapley highlighted.
Mr Mapley and another non-executive director, US-based Zahid Ullah, stood down from the board last year, following disagreements with liquidators on the best course of action.
Subscribe