London, United Kingdom (AHN) – Britain’s financial watchdog fined New York-based investment bank Goldman Sach $27 million on Thursday for belatedly reporting a fraud investigation of the firm by U.S. regulators.

The Financial Services Authority (FSA) only learned in April about the U.S. Securities and Exchange Commission’s fraud lawsuit against Goldman Sach, which settled the case for $550 million in July. The SEC investigation on how the bank inappropriately sold a collateralized debt obligation began in August 2008 and covered Goldman Sach’s U.K. operations.

The FSA said the lack of notification allowed Fabrice Tourre, the central figure in the fraud case, to continue working in the U.K. for several months. Tourre is fighting the charges and is on paid leave.

The $27 million fine was the second largest imposed by the FSA. In June, it also fined J.P. Morgan Chase & Co.’s London office $51 million for not segregating clients’ money from the firm’s accounts.

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