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 Goldman joined Cantor Fitzgerald in 2003, according to a lawsuit
filed by CF Notes that was transferred to a New York state court in
Manhattan this week.
CF Notes, a Cantor affiliate, issued the loan to Goldman in 2006 on
the condition that he pay it back upon leaving the firm.
In 2007, Goldman resigned from Cantor, and he has not made any
principal or interest payments, the lawsuit said.
In 2010, Cantor Fitzgerald paid a $250,000 fine to settle a
disciplinary proceeding for failing to supervise an executive who,
in 2006, was trading the same stocks in his personal account and a
firm proprietary account. The firm neither admitted nor denied
wrongdoing. The settlement identified Goldman by title but did not
name him.
Joanna Hendon, a lawyer for Goldman, did not immediately return a
call for comment. In court papers, Goldman said CF Notes tried to
recover too late, and that the statute of limitations is six years
from the date of the note.
Goldman, who joined JPMorgan Chase after leaving Cantor, resigned
from the bank in July 2012. He had been named chief risk officer of
the Chief Investment Office that lost billions in the "London Whale"
derivatives trades in early 2012, around the time problems began to
mount. The trades, which ultimately lost $6.25 billion, took on the
"London Whale" nickname that hedge funds gave to the London-based
trader who put on the exceptionally large positions.
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Robert Hubbell, a spokesman for Cantor Fitzgerald, declined to
comment.
The case was filed in Westchester County in December and transferred
this week to Manhattan, where the complaint also had been filed.
The case is CF Notes LLC v. Irvin Goldman, New York State Supreme
Court, Westchester County 67754/2013. The New York County case is
No. 159670/2013.
(Reporting by Karen Freifeld; additional
reporting by David Henry in New York; editing by Bernard Orr)
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