The U.S. Securities and Exchange
Commission (SEC) charged Goldman Sachs and its former senior
executive on Thursday on his campaign services in an attempt to
influence the awarding of contracts.
Neil Morrison, Goldman Sachs' former vice president in Boston
office, used his work time and the firm's phones and email from
November 2008 to October 2010 for campaign activities of former
Massachusetts Treasurer Timothy Cahill when he was a candidate for
governor, the SEC alleged in a statement.
Under the SEC's "pay-to-play" rules, firms are disqualified from
underwriting municipal bond sales within two years of making
contributions, including "in-kind" non-cash contribution, to an
official of the government issuing the bonds.
Nevertheless, Goldman Sachs subsequently took part in 30
prohibited underwritings with Massachusetts issuers and earned more
than $7.5 million in underwriting fees, according to the
SEC's order against Goldman Sachs.
Without admitting or denying the findings, Goldman Sachs
consented to settle the charges by paying roughly $12 million, including disgorgement, interest and monetary penalty, said
the SEC in the statement.
Goldman Sachs fired Morrison in December 2010, according to the
order.
This enforcement marks the first SEC action for pay-to-play
violations involving "in-kind" contributions to a political
campaign, said the statement.
