A US regulator fined Goldman Sachs Group Inc $650,000 for being too slow to reveal that two employees, including a central figure in a high-profile fraud lawsuit, might face civil charges from the US Securities and Exchange Commission. In imposing the fine, the Financial Industry Regulatory Authority said Goldman failed to report the employees' receipt of so-called Wells notices within 30 days.
FINRA said Goldman in particular waited more than seven months before disclosing the notice received by Fabrice Tourre, a vice president accused over his role in the 2007 "Abacus" transaction. The regulator said Goldman waited to reveal Tourre's notice until May 3, 2010, and then did so only after the SEC had sued Goldman and Tourre on April 16. As part of the settlement, Goldman agreed to review its reporting procedures and improve them as needed. It did not admit wrongdoing. Goldman spokesman Michael DuVally declined immediate comment. A Wells notice indicates the SEC is considering filing civil charges, and gives a recipient a chance to mount a defences.
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