Goldman Paying $12M To End Landmark SEC Pay-To-Play Case

Law360, New York (September 27, 2012, 12:40 PM EDT) -- Goldman Sachs Group Inc. agreed Thursday to pay $12 million to settle a first-of-its kind U.S. Securities and Exchange Commission administrative action alleging the firm won lucrative municipal underwriting business from Massachusetts by assisting the gubernatorial campaign of a now-indicted state treasurer.

The company paid $7.6 million in disgorgement, $670,000 in prejudgment interest and a $3.75 million penalty — the largest ever imposed by the SEC for so-called pay-to-play violations of a Municipal Securities Rulemaking Board rule, according to the agency.

The settlement stems from separate...
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