Goldman Sachs Takes Legal Action

Financial giant Goldman Sachs is reportedly taking legal action against an unaffiliated bankruptcy specialist who has been running a side company called “Goldman Sachs Capital LLC.”

The Wall Street Journal reports that Arian Eghbali, 40, registered Goldman Sachs Capital with the California Secretary of State’s office in 2022, listing himself as the firm’s chief executive in 2024.

Nick Carcaterra, a spokesperson at the actual Goldman Sachs, tells the WSJ that Eghbali hasn’t worked for the financial giant, which is taking action regarding the use of its name.

Eghbali reportedly represents trade creditors through his firm Olympus Guardians and is involved in numerous cases related to high-profile companies like Forever 21, Hooters, and Virgin Orbit.

The California businessman tells the WSJ he considered embarking on a business venture that he thought would receive funds from actual Goldman Sachs, so he registered Goldman Sachs Capital.

That venture didn’t materialize, and Eghbali has since used the LLC to maximize Employee Retention Credits (ERCs), refundable tax credits designed to encourage employers to keep on employees during the pandemic.

Carcaterra, however, tells the WSJ that Eghbali’s reasoning for registering Goldman Sachs Capital does not follow logic.

A representative for the California Secretary of State’s Office tells the WSJ that it doesn’t regulate brand or intellectual-property issues and only cross-checks registrations against names that are already in its system, not national brands.

Generated Image: Midjourney