ID :
193042
Tue, 07/05/2011 - 15:59
Auther :
Shortlink :
https://oananews.org//node/193042
The shortlink copeid
Goldman Sachs sued over alleged fraud in fund sales
SEOUL, July 5 (Yonhap) -- Heungkuk Life Insurance Co. and Heungkuk Fire & Marine Insurance Co. filed a complaint against Goldman Sachs Group Inc. with a local prosecutors' office over alleged fraud in fund sales, prosecutors said Tuesday.
According to the Seoul Central District Prosecutors' Office, the two insurers accused the U.S. investment banking giant of failing to inform them of the risks of investing in its financial product.
"We invested 200 billion won in the Timberwolf fund sold by Goldman Sachs in 2007 and lost 43.9 billion won," or US$41 million, Heungkuk said in the complaint filed at the end of June. "Goldman told us the fund was safe and very profitable, but the company's internal e-mail said that it was a poor product."
In March, the two insurers lodged a damage suit against Goldman Sachs with a U.S. court to seek compensations over the loss from the same financial product.
According to the Seoul Central District Prosecutors' Office, the two insurers accused the U.S. investment banking giant of failing to inform them of the risks of investing in its financial product.
"We invested 200 billion won in the Timberwolf fund sold by Goldman Sachs in 2007 and lost 43.9 billion won," or US$41 million, Heungkuk said in the complaint filed at the end of June. "Goldman told us the fund was safe and very profitable, but the company's internal e-mail said that it was a poor product."
In March, the two insurers lodged a damage suit against Goldman Sachs with a U.S. court to seek compensations over the loss from the same financial product.
