Subscribe to our mailing list

* indicates required

 

 

 

 

BROWSE BY TOPIC

ABOUT FINANCIALISH

We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.

 

Stay Informed with the latest fanancialish news.

 

SUBSCRIBE FOR
NEWSLETTERS & ALERTS

FOLLOW US

Archive

Investors Say Goldman Hijacked Silicon Valley Fortune

April 19, 2012
[ by Melanie Gretchen ] A Silicon Valley couple who entrusted their $1 billion tech fortune to Goldman Sachs, claims that newly discovered documents show that the Wall Street firm 'hijacked' $450 million of stock from the couple.  The firm apparently did this by wrongly deleting their names from a custodial account or stock certificates that was to have read, something to the effect of: “Goldman Sachs & Co. For The Benefit Of ..."  However, documents do not include the words, “For the Benefit Of” now appear on the certificates, lawyers said yesterday. The family's conclusion is that the firm substituted its name alone, without qualification and without the names of the couple on certificates or custodial accounts.  Having done so, the family can only presume that Goldman Sachs misappropriated stock worth hundreds of millions of dollars - and it's supposedly documented on recently discovered documents. The documents now will be submitted to FINRA as part of a new arbitration claim.   The family had filed prior claims with FINRA that claimed Goldman had said the family stock holdings would be liquidated in the 2008 stock sell-off because their value dropped to below $5 a share. Findings and Allegations. Sehat Sutardja, 49, and his wife, Weili Dai, who founded chip giant Marvell Technology Group, invested their $1 billion tech fortune into the firm.  During the 2008 stock crash, they discovered stock certificates and related paperwork showing that Goldman had about 25 million shares of Marvell shares transferred from the family’s personal ownership, under management by Goldman, to the firm - effectively hijacking $450 million of stock. The Transfer Under Question. The family insists that they had never approved such a transfer of their stock holdings, which were managed by Goldman’s tony private client group.  What the family had allowed was for the firm to put their Marvell shares into a purported custodial account to protect against a so-called "$5 liquidation rule." However, while the family allowed the transfer only if the new certificates listed owners as "Goldman Sachs & Co. For The Benefit Of ...," documents show no such words of "For the Benefit Of" now appear on the certificates." Just a $450 million difference. For further details, go to [NYPost, 3/27/12].