The SEC has fined banking giant Goldman Sachs $8 million for a pay-to-play scheme with a former Democratic official in Massachusetts.
A Goldman Sachs employee provided secret cash contributions, as well as in-kind donations, to former Democratic Treasurer Tim Cahill in exchange for sweetheart deals on municipal bond offerings, according to the SEC complaint.
Goldman collected more than $7.5 million in fees off of the deals brokered by Neil Morrison, who has since been fired for misconduct.
The scheme will cost Goldman nearly $12 million in total civil penalties, according to the Associated Press.
Cahill, a lifelong Democrat, ran as an independent candidate against Gov. Deval Patrick (D., Mass.) in 2010 in a campaign doomed by controversy. In addition to Morrison’s dirty money, he used $1.65 million of state lottery money to purchase advertising in the race. Federal authorities indicted him in April for the improper use of the money. His trial is set to begin in October.