Libya sues Goldman Sachs for using hookers as bribes to mislead the sovereign fund in 2008

Bankers involved with hookers, drugs, and bribes?  Nah, that would never happen.. but the sovereign investment fund for Libya’s national government begs to differ as they announced on June 14 that it indeed happened, and they are taking the Goldman Sachs to court for using these types of bribes to secure risky contracts that were lost during the fallout of the 2008 Credit Crash.

Libya’s national investment fund is seeking restitution for $1.2 billion it says was lost through investments made by Goldman Sachs, who put the money in toxic and risky investments which completely deteriorated when the global financial system collapsed eight years ago.

Libya’s national investment fund is attempting to claw back $1.2 billion from nine trades it carried out with Goldman Sachs in 2008, which supposedly came about after the bank used prostitutes, private jets, and five star hotels to secure contracts.

Libya’s national investment fund is attempting to claw back $1.2 billion from nine trades it carried out with Goldman Sachs in 2008, which supposedly came about after the bank used prostitutes, private jets, and five star hotels to secure contracts.

“The disputed trades were inherently unsuitable for a nascent sovereign wealth fund such as the LIA and Goldman Sachs knew (or at the very least suspected) the LIA did not properly understand the trades, which were highly structured, complex and risky,” Libya’s Investment Authority said in a document submitted to the court. – Russia Today

Besides losing Libya’s money in risky investments, Goldman Sachs has a long history of telling their clients to buy and sell one thing, while secretly betting against that advice to profit from customer losses.  And their influence in the affairs of sovereign nations also extends to country’s like Greece and Italy, whom they helped to manipulate their accounting, which then facilitated their inclusion into the European Union.

Hang-a-Banker

As Libya sits in chaos still after the U.S. funded the overthrow and assassination of their leader Muammar Qadaffi, the nation is seeking to rebuild itself without having access to their over 100 tons of gold locked away by London banks who allotted a number of spurious regulations that make getting back their sovereign gold nearly impossible.  And this leaves Libya with small hopes of getting back some compensation from the West for using their money to speculate on toxic investments.

Kenneth Schortgen Jr is a writer for Secretsofthefed.comExaminer.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.