Hedge Funds

Paulson: On the hook?

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Weighing Paulson & Co.’s legal liability in the SEC’s Goldman Sachs case, including potential multi-billion dollar RICO claims from losing investors.

John Paulson explains his subprime trade at the Absolute Return 
Symposium in 2007.
John Paulson explaining his subprime trade at the 2007 Absolute Return Symposium.

Paulson & Co. Inc. wasn’t charged in the Securities and Exchange Commission’s allegations of securities fraud against Goldman Sachs, but the powerful hedge fund is still attracting unwanted attention for helping shape a mortgage-backed security in 2007 that made it $1 billion—and cost other investors the same amount.

Some legal experts believe that