- Apr 23, 2009
- Reaction score
- everywhere and nowhere
OpenSecrets | Hedge Fund Manager in Goldman Sachs Fraud Case is a Major Donor to Both Democrats and Republicans - Capital EyeA New York investor named John A. Paulson is at the heart of the fraud lawsuit filed today by the Securities and Exchange Commission against Goldman Sachs.
Paulson's hedge fund company allegedly paid Goldman Sachs to structure a financial investment product that allowed Paulson & Co. to choose which mortgage securities to invest in, based on a belief that they would lose value or default, and then take short positions against them. Thus, when the subprime mortgages actually lost value, Paulson & Co. earned a profit of approximately $1 billion.
John Paulson, the president of the company, is not charged in the complaint with any wrongdoing in the case.
His only financial transactions, however, have not taken place on Wall Street.
In 2005, 2007 and 2008, his firm spent between $30,000 and $90,000 each year on federal lobbying.
Furthermore, along with his wife, Jenny, Paulson has contributed more than $213,000 to federal candidates, parties and committees during the past decade, according to a Center for Responsive Politics review of campaign finance reports filed with the Federal Election Commission.
Of that amount, about 60 percent has gone to Republicans and about 40 percent has gone to Democrats.