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Goldman Sachs Allegedly Covered Up Sexual Harassment

Marla Crawford worked for Goldman Sachs Group Inc. as a vice-president, reporting to the global head of litigation, Darrell Cafasso. She alleges that Cafasso had an affair with an unnamed subordinate, a violation of bank policies. Crawford heard from this female subordinate that Cafasso stated he was falling in love with her and said, “I have feelings for you I have never had for anyone else but my wife.” According to the woman, Cafasso promised her that if she gave in to his advances, Cafasso would “return the favor” professionally. Once the affair began, the female subordinate purportedly received strong performance evaluations. Once Cafasso’s wife found out about the affair, it allegedly ended.

Goldman Sachs initiated an investigation after Cafasso revealed the affair to General Counsel Karen Seymour. According to the lawsuit, Goldman Sachs conducted a “bogus” investigation that failed to interview potential witnesses including Crawford. Crawford claims she shared information about Cafasso’s conduct with Goldman Sachs but the company told her to keep quiet. Thereafter, Goldman Sachs cut her bonus and fired her when she refused to relocate to Dallas after working with the bank for over 10 years.

In response to the lawsuit, Goldman Sachs asserted that it was without merit. Crawford declined to relocate as part of a broader restructuring of the legal department and thus was fired. The company denies it was retaliatory.