Goldman boss dragged into row with Europe’s best winemaker

The Goldman Sachs boss has been embroiled in a row over allegations the Wall Street investment bank falsely sold financial derivatives to the world’s largest wine exporter.

David Solomon, who moonlights as a DJ in his spare time and is a fine wine collector himself, has been summoned by the family behind the Don Simon sangria and is likely to testify as a witness in a Spanish criminal court .

John Waldron, the bank’s chief operating officer, was also called to testify as a witness in the case.

The lawsuit concerns allegations that the investment bank encouraged a former executive of J García Carrión to carry out unauthorized foreign exchange transactions.

The company claims that the former employee and one of his family members went into their pockets by concluding “a very large number of unauthorized transactions” with “the encouragement and / or in accordance with the recommendations” of Goldman Sachs.

The criminal proceedings are part of a larger scandal involving Goldman Sachs, Deutsche Bank and BNP Paribas, with several Spanish companies claiming they were poorly sold currency instruments.

Goldman separately launched a lawsuit against the winemaker last year in an English court, arguing that Garcia Carrion had failed to make certain payments to the Wall Street giant.

Mr. Solomon is a wine connoisseur himself, with a huge collection at his home in East Hampton, New York.

A spokesperson for the bank said: “For years, J Garcia Carrion has uncompromisingly taken advantage of his use of forex derivatives with Goldman Sachs to manage his exposure to international currencies. It has also published the details of its derivative activity in its audited accounts.

“The company’s refusal to make payments due for transactions in 2020 on the grounds that these transactions were unknown to it and exceeded its capacity and authority was unjustifiable and left us no choice but to initiate proceedings judicial process to recover the amount owed. “

A spokesperson for J. Garcia Carrion said: “J. Garcia Carrion is determined to understand exactly what was going on within Goldman Sachs when these speculative and unauthorized transactions were carried out.

“We need to know who knew what and why this conduct has been allowed to continue unchecked for so long. This is why we asked the Spanish court to call the bank’s top executives, including David Solomon and John Waldron, to testify in this case. We can’t wait to see them in court.

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