Boston, MA 01/28/2014 (wallstreetpr) – Irvin Goldman, former JPMorgan Chase & Co. (NYSE:JPM) executive, who oversaw risk at the company during the “London Whale” derivatives catastrophe, is being charged for non-payment of a $2 million loan.
Goldman’s $2 million loan
According to a lawsuit filed by CF Notes, Goldman had joined Cantor Fitzgerald & Co. in 2003 and three years later, in 2006, he had availed a loan of $2 million from a Cantor affiliate. The loan was issued to him on condition that he would return the amount as he leaves the firm. In 2007, Goldman resigned from Cantor without paying any principal or interests payment. The lawsuit was filed in Westchester County earlier in December and is now taken to New York state court in Manhattan this week. A complaint has also been filed there.
Cantor Fitzgerald paid the price
Later in 2010, Cantor Fitzgerald had to pay a fine of $250,000 in order to settle a disciplinary procedure for poor supervision of the company’s executive. Goldman, during his tenure in the company was trading the same stocks in his individual account as those he was trading in a firm proprietary account. To this, the firm did not come up with a clear answer stating whether it was right or wrong. The settlement also did not name Goldman although he was classified by title. Goldman, on the other hand, replied saying that CF Notes made the recovery attempt too late. He said that the statue of restriction is up to six years from the date of the note.
Goldman had joined JPMorgan Chase & Co. (NYSE:JPM) immediately after he resigned from Cantor. He left the bank in July 2012. That year, in the “London Whale” derivatives trades, he was named chief risk officer of the Chief Investment Office. At the time, they had lost $6.25billion. This was the time when problems had began to pool.