New York may use Martin Act against Goldman Sachs
The criminal investigation of Goldman Sachs Group Inc. by the Manhattan district attorney\'s office has at its disposal a 90-year-old New York law that makes it easier for state prosecutors to bring charges than for their federal counterparts. District Attorney Cyrus Vance Jr. has subpoenaed Goldman Sachs, the fifth-biggest U.S. bank by assets, for records on its activities leading into the credit crisis, two people familiar with the matter said. Vance may bring charges under the state\'s Martin Act, which lawyers call a potent tool for New York prosecutors probing investment fraud, Ponzi schemes and other white-collar crimes. Peter Henning, professor at Wayne State University Law School, said he doubts that Vance\'s investigators will find \"a smoking gun\" in documents that have already been reviewed by Congress and federal regulators, including the U.S. Securities and Exchange Commission. By using the Martin Act, Vance may instead be able to build a criminal case based on circumstantial evidence, he said. \"It makes it easier to prove,\" Henning said of the state statute.