Bayou v. Goldman Sachs Execution & Clearing

Item: Rich, Intelisano & Katz, LLP
Rating: 5
Author: Michael B.

Bayou v. Goldman Sachs Execution & Clearing is a $20.6 million FINRA arbitration award against Goldman Sachs, won by our firm, related to the Bayou hedge fund fraud. The 18-day hearing generated a 100% recovery of the compensatory damages requested. It is the largest arbitration award ever rendered against Goldman, the second largest hedge fund-related customer arbitration award, and the ninth largest customer arbitration award of any kind against a Wall Street firm. The award is also the first win in any court or arbitration forum by investors against a clearing or prime broker related to a hedge fund Ponzi scheme based upon fraudulent transfer theories. The award was confirmed by Judge Rakoff of the SDNY in November 2010 and is currently on appeal to the Second Circuit.

Below are links to the FINRA Arbitration Award, Judge Rakoff's Opinion in the Southern District of New York, and articles related to the matter.

Award and Opinion:

November 30th, 2010
Bayou Group v. Goldman Sachs SDNY Opinion

June 24th, 2010
Bayou Group v. Goldman Sachs FINRA Award

News Articles:

Wall Street Journal
Goldman Battles Bayou Decision - Oct. 15, 2011

Bloomberg
Goldman Sachs Asks Court to Throw Out $20.5 Million Bayou Creditors’ Award - Oct. 15, 2011

NY Times
Goldman’s $20 Million Consequence - Nov. 30, 2010
Source: NY Times Dealbook

Reuters
Goldman loses bid to toss record Bayou award - Nov. 9, 2010

The American Lawyer
Judge Rakoff Confirms $20.6 Million Arbitration Award Against Goldman Sachs - Nov. 9, 2010

NY Times
Judge Upholds Award Against Goldman - Nov. 8, 2010
Source: NY Times Dealbook

Hedgefund.net
Goldman Fighting Bayou $20M+ Arbitration Award - Oct. 22, 2010

NY Times
In Clearing Bayou, Quagmire for Goldman - Oct. 21, 2010
Source: NY Times Dealbook

New York Times
Creditors Want Award Against Goldman Upheld - Sept. 8, 2010

Wall Street Journal
Trade Group Seeks to Have Bayou Award Thrown Out - August 6, 2010

Wall Street Journal
Goldman Sues to Vacate $20.6 Million Bayou Award - July 24, 2010

New York Times
Goldman Must Pay Some Bayou Losses - June 26, 2010

Wall Street Journal
Goldman Told to Pay Bayou Fund Creditors - June 26, 2010

Financial Times
Goldman to pay $21m to settle claims over Bayou collapse - June 26, 2010

★★★★★

Daniel Katz and his firm are exceptionally knowledgeable about the constantly changing construction business and they have given my company insightful legal advice throughout the years. They have assisted with numerous construction negotiations, claims, and business matters with many satisfactory resolutions. Michael B.

★★★★★

Daniel Katz and his team have always been exemplary, always prepared, always responsive and extremely knowledgeable about construction issues. I cannot imagine better representation. Jim F.

★★★★★

RIK fought hard for me in my FINRA arbitration which resulted in an outstanding result. I will forever be grateful to them. Jeff B.

★★★★★

Ross and his team did a wonderful job representing me in my employment dispute. They were honest, intelligent and hard working. I recommend RIK to all of my colleagues in the financial industry. Steven F.

★★★★★

The theft of pension fund assets by a money manager prompted the Board of Trustee’s investigation into “how did this happen?” John Rich and the Rich, Intelisano & Katz team managed this complex securities litigation matter to fruitful results for our pension fund. Cecelia C., Executive Director