March 28, 2012
/PRNewswire/ -- The founders of Marvell Technology Group (Nasdaq: MRVL),
Dr. Sehat Sutardja
Ms. Weili Dai
, are preparing to amend their claim filed with the
office of the Financial Industry Regulatory Authority (FINRA) against Goldman Sachs (NYSE: GS) and two account executives, alleging Goldman Sachs defrauded the two Silicon Valley executives of several hundreds of millions of dollars in the midst of the 2008 financial crisis. At that time,
Dr. Sutardja and Ms. Dai were two of the largest victims of fraud by Goldman's Private Wealth Management Group
. Today's breaking news reveals there will be an amended FINRA Claim based on new evidence that Goldman Sachs engaged in secret re-titling into Goldman's name alone of over 20 million shares owned by two founders of Marvell, Dr. Sutardja and Ms. Dai. In a series of transactions eerily similar to MF Global,
currently under Congressional investigation for misusing client funds
, the amended FINRA Claim will allege Goldman Sachs secretly instructed the stock transfer agent to obtain title to the Marvell shares only in Goldman Sachs' name, without their clients' permission.
Recent information revealed Goldman Sachs re-titled over 20 million shares of its clients' Marvell stock so that, as will be asserted in the amended FINRA Claim, Goldman could trade on its own account, create a market for its affiliated hedge funds and, ultimately, recapitalize its accounts to be used to help save the Firm from financial ruin at the height of the 2008 financial crisis. In the midst of a financial crisis, the FINRA Claim contends Goldman put its own interests ahead of its clients' interests.
A linchpin of Dr. Sutardja and Ms. Dai's FINRA Claim is the allegation Goldman unlawfully re-titled into Goldman's name alone over 20 million Marvell shares owned by Dr. Sutardja and Ms. Dai without client knowledge or authorization. Newly discovered hard evidence establishes this claim. It is questionable whether, under federal regulations, a brokerage firm is permitted to cause a client's shares to be placed in the brokerage firm's name absent the express consent of the client. It was not until
that Dr. Sutardja and Ms. Dai discovered Goldman's re-titling. Thus, Goldman Sachs had over 20 million shares in its name alone from
, even though the shares were actually owned by its clients.
"The best circumstantial evidence supporting our clients' FINRA Claim is the amount of money Goldman Sachs made in proprietary trading during the time frame 2008-2011," said attorney
Cotchett, Pitre & McCarthy, LLP
, one of the attorneys representing Marvell's co-founders.
In January, 2008, under the guise of a margin account, Goldman undertook steps to re-title in its own name "GOLDMAN, SACHS & CO" over 20,000,000 Marvell shares then held by Dr. Sutardja and Ms. Dai. Goldman had represented all re-registered shares would indicate on the face of the stock certificate "GOLDMAN, SACHS & CO. FOR BENEFIT OF SEHAT SUTARDJA" or, in the alternative, "GOLDMAN, SACHS & CO. FOR BENEFIT OF WEILI DAI."