Have you suffered losses due to your investment in Goldman Sachs’ Hudson Mezzanine Funding 2006-1 Ltd or Hudson Mezzanine Funding 2006-1 Corp? If you did, the attorneys of The White Law Group may be able to help you recover your investment losses through FINRA arbitration.
There is still time to recover these losses under FINRA rules as long as the claim is brought within 6 years of the event or occurrence giving rise to the claim. The White Law Group’s securities practice is dedicated to FINRA arbitration and has the experience to help guide you through the recovery process.
According to Reuters, “Goldman constructed the $2 billion so-called synthetic CDO in late 2006 and was the sole counterparty.” Initially the investments were highly rated, “70 percent of Hudson Mezzanine had AAA ratings, but 18 months later it was downgraded to junk status.” By late 2007 and early 2008 investors in the CDO’s were suffering serious losses and by November of 2008 the deal had completely fallen apart.
The Hudson CDO does not just appear to be another investment that turned for the worst when the economy crashed because, in this case, it seems only the investors are the only ones that lost. A class action lawsuit and a Senate investigation allege that while many investors lost most or all of their investment, Goldman Sachs made money by hedging against the Hudson Mezzanine Funding 2006-1.
A 2010 class action against Goldman alleges that “In a classic case of ‘heads we win, tails you lose,’ the defendants failed to disclose to investors both that the CDOs were structured by defendants such that they were doomed to lose value” and further that Goldman Sachs “would profit enormously from proprietary short positions when the CDOs did lose value..”
The Senate also had comment on this matter in a 2011 report that, according to CNN Money, “describes Goldman Sachs as a “case study” of the recklessness and greed on Wall Street that set off the 2008 financial crisis.”
Both institutional investors and individuals purchased the Hudson Mezzanine Funding 2006-1 from Goldman Sachs directly and through other FINRA registered brokerage firms. Brokerage firms have a fiduciary duty to its clients to perform due diligence on any investment prior to offering it for sale to ensure that the investment is appropriate for a client in light of the client’s age, investment experience, and investment objectives.
If you suffered investment losses of more than $50,000 due to your purchase of the Hudson Mezzanine Funding 2006-1 and would like to speak to a securities attorney about your potential to recover your losses please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://whitesecuritieslaw.com.
Tags: broker fraud, Chicago securities attorney, Goldman Sachs fraud, goldman sachs lawsuit, Hudson Mezzanine Funding 2006-1 Corp, Hudson Mezzanine Funding 2006-1 Ltd, Hudson Mezzanine Funding fraud, Hudson Mezzanine Funding investigation, Hudson Mezzanine Funding lawsuit, Hudson Mezzanine Funding losses, Hudson Mezzanine Funding misrepresentation, Hudson Mezzanine Funding recovery, Hudson Mezzanine Funding scam, investment losses, investor protection, Recover Goldman Sachs Losses, Recovery of Goldman Sachs investments, unsuitable investments Last modified: July 17, 2015