The SEC says Goldman Sachs defrauded investors in a CDO. CDO's are those complicated bonds that lost huge amounts of value when the housing market went bust. Copy/paste the link below for an explanation of the case:
http://www.npr.org/blogs/money/2010/04/sec_accuses_goldman_sachs_of_f.html?ft=1&f=93559255
The investing lesson from this case isn't really a lesson, but rather a reminder. Investment banks such as Goldman do not put their clients' interests first, as they would have you believe. Avoid I-bank engineered/inspired under-performing expensive mutual funds and take back half of your life's work from your fund manager! (see SmartSheepInvestor's January post for a full explanation)
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