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BREAKING NEWS FROM CNBC'S STEVE LIESMAN: FORMER PAULSON FUND MANAGER PAOLO PELLEGRINI WAS SEC SOURCE IN GOLDMAN CASE

LIESMAN: MARK THANKS VERY MUCH. WE'VE BEEN TOLD, MARK, BY A SOURCE FAMILIAR WITH THE INVESTIGATION THAT PAOLO PELLEGRINI, THE HEDGE FUND MANAGER THAT WORKED FOR PAULSON AS HIS RIGHT HAND MAN, WAS THE SOURCE FOR THE SEC OF THE CONFIRMATION TO THE SEC IN THE GOLDMAN SACHS FRAUD CASE HERE. WE WERE TOLD THAT PELLEGRINI TOLD THEM OF PAULSONS INVOLVEMENT IN THE SELECTION OF THE SECURITIES THESE APPARENTLY VERY LOUSY SUBPRIME SECURITIES THAT WENT INTO THE CDO. PELLEGRINI WORKED FOR PAULSON FOR SEVERAL YEARS AND LEFT IN EARLY 2009 HAVING MADE A BUNDLE OF MONEY FOR PAULSON AND THEN OPENED UP HIS OWN HEDGE FUND SO MARK THAT'S WHAT WERE TOLD THAT PAOLO PELLEGRINI IN A DEPOSITION WAS THE SOURCE. AND ONCE AGAIN, I WANT TO GET TO WHAT MELISSA WAS SAYING, THERE'S NO ALLEGATION FROM WHAT I UNDERSTAND THAT PAULSON DID ANYTHING WRONG HERE. THIS IS AN ISSUE OF DISCLOSURE ON THE PART OF GOLDMAN AND I BELIEVE THAT THAT'S WHY PELLEGRINI WAS COMFORTABLE TO COOPERATE WITH THE SEC AND WE DID TALK TO AN INDIVIDUAL WHO SAW THAT DEPOSITION

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