Jun 28 2010

Goldman to pay creditors 206m in Bayou scam

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NEW YORK - Goldman Sachs Group Inc. has been ordered to pay $20.6 million to scammed investors who say the investment bank should have known about the pyramid scheme pulled off by the collapsed Bayou Hedge Funds.

A three-person arbitration panel of the Financial Industry Regulatory Authority held the banks Goldman Sachs Execution and Clearing unit, formerly known as Spear Leeds and Kellogg, liable in the dispute.

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