Feb. 28 (Bloomberg) -- Jonathan Egol, a Goldman Sachs Group Inc. trader whose desk produced the security that prompted the Securities and Exchange Commission to sue the firm, has retired.
Egol, 44, left the New York-based bank earlier this year, said Michael DuVally, a company spokesman. He joined the firm in 1998 and was named a managing director in 2007.
Goldman Sachs paid a then-record $550 million in 2010 to settle an SEC suit over the marketing of a synthetic collateralized debt obligation dubbed Abacus 2007-AC1. The firm created a committee that year to review its business standards and practices.
The SEC sued Fabrice Tourre, 35, one of the employees under Egol, after dropping a plan to file claims against Egol, according to interviews with SEC enforcement staff conducted by the agency’s inspector general. Tourre was found liable in a jury trial last year in which the SEC claimed he intentionally misled investors in the deal.
Egol testified in Tourre’s trial in July that he was “not aware of any” disclosures to investors that Paulson & Co., which stood to make money from the failure of the transaction, helped select the assets underlying it. Egol said Tourre did tell a superior that the hedge-fund firm run by billionaire John Paulson helped pick the portfolio of 90 subprime mortgage-backed securities.
The Wall Street Journal reported the departure earlier today.
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