The SEC has accused Wall Street powerhouse Goldman Sachs of defrauding investors in its disclosures about securities it sold tied to subprime mortgage securities as the housing market was faltering, the Associated Press reports.

The Securities and Exchange Commission has announced civil fraud charges against Goldman Sachs and one of its vice presidents.

The agency alleges that the company marketed complex subprime mortgage securities and failed to disclose to investors that a major hedge fund had bet against the securities.

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(Posted by Doug Stanglin)



