Aca Management News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The case. >> reporter: the sec says that in 2007, a hedge fund manager named john paulson paid goldman sachs $15 million to create a fund people could invest in and made up of bonds backed mostly by subprime mortgages from florida, arizona, california, and places that were experiencing huge housing booms that paulson believed would go bust. now, bad as that sounds, that is not illegal. that is just a risky investment and the sec says, what was illegal is that goldman told investors that the bonds were chosen by a third-party. aca management and didn't reveal that paulson had given the selectio...

Put together. they said that they actually invested and lost more than $100 million. that's their defense. they said one of the investors, aca management actually structured much of the day and half the selection of the portfolio in that bucket suggested by the hedge fund manager, john paulson's firm. on the call, one interesting question. one analyst asked them, did aca and the others who invested, did they know paulson was taking the negative side of that portfolio, and they said, well, we don't really know. at the heart of the s.e.c. charges is that they should have told their investors tha...