Individuals from Paulson & Co., the hedge fund at the center of a fraud suit brought by the SEC against Goldman Sachs, have given nearly one hundred thousand dollars in campaign donations to New York Attorney General and presumed gubernatorial candidate Andrew Cuomo. Paulson & Co. is not charged in the suit, but its role in the generation of a mortgaged-backed security sold by Goldman Sachs lies at the heart of the SEC’s claim.
According to the New York State Board of Elections’ campaign finance data, John Paulson and his employees Putnam Coes, Paolo Pellegrini, Stuart Merzer, Michael Waldorf, and Andrew Hoine donated a combined $92,650 to Cuomo’s campaigns since 2008. The largest sums were given in 2009 by Paulson’s former partner Paolo Pellegrini ($45,000 on June 3rd) and Paulson himself ($25,000 on April 29th).
Paulson’s firm made huge profits in recent years by betting against the subprime mortgage industry.
Cuomo’s top campaign contributors include another hedge fund owner who profited by shorting subprime; James Dinan, head of York Capital Management gave Cuomo $25,000 in January 2008, and an additional $50,000 in June 2009. Dinan is also a major contributor to former NYS Insurance Commissioner and AG candidate Eric Dinallo ($55,900 in October 2009). Dinallo also received $10,000 from John Paulson and $5,000 from Paulson’s employee Michael Waldorf.