London, June 13: Investment bank Goldman Sachs have been accused of paying for prostitutes, private planes and luxurious hotels and lavish business meetings on yachts to bag business from the Libyan Investment Authority (LIA), the high court of the UK has been told, said reports.
The charges came at the beginning of a claim by the LIA for $1.2 billion from Goldman Sachs.
Fund lawyers set up under the regime of late Libyan dictator Muammar Gaddafi claimed for losses on nine trades that the firm had executed for the Libyan firm between January and April 2008.
While the fund lost all its investments through the trades, Goldman Sachs made huge profits of over $200m from the transactions, sources in the LIA said.
The latter felt betrayed by the outcome and also by the fact that it was staffed by members who were not appointed on the basis of merit.