THE KILLER COP STORY WE NEVER HEAR: Hedge Fund Manager Shot for Suspected Sale of Fraudulent Derivatives

Goldman Sachs executive Oliver Dauphin was shot and killed today when he failed to respond to questioning by a police officer.

Dauphin was waiting for his limo at the curb outside the Bhutan Grill when police officer Damon Johnson overheard him on the phone, selling what sounded like a rent based derivative.

"I knew how much damage those mortgage back derivatives did to our economy and the world, so I wanted to ask some questions to find out if they were solid or another pump and dump fraud like the mortgage backed derivatives," said Johnson.

Johnson instructed Dauphin to hang up, so he could ask his questions, but Dauphin ignored him and walked a few feet away.

Johnson followed and took his phone out of his hand, ending his call.

Dauphin tried to grab his phone back, and Johnson said, "not until you answer some questions."

Dauphin became enraged and said, "Do you know who I am? Do you know who I am? I'm the guy who's going to get you fired. I'm going to make your life a living hell. You're dead!"

Johnson took his last statement as a threat, drew his revolver, and told Dauphin to put his hands on his head.

Rather than comply, Dauphin made a dismissive noise and reached inside his jacket.

Fearing that he may have been reaching for a weapon, Johnson opened fire, hitting Dauphin three times in the chest and once in the head.

A later search of his body found no weapon, only a wallet and a cigar.

Others in the finance industry were shocked by the shooting and demanded that the officer be fired or at least put on suspension pending an investigation.

The police chief said he had no plans to do so since the officer acted within department policy.

"A suspect wearing a long heavy coat like that could be hiding a shotgun, assault rifle or grenade launcher for all we know, so given his movements, the shooting was appropriate. Police officers deal with very dangerous people in this neighborhood who have been known to rob pension funds, bankrupt local and state governments, and even countries with their fraud. Given that threat, Officer Johnson acted appropriately."

He also said that a cigar had been stolen from a nearby bodega and it was very likely the officer could smell the tobacco. Johnson did not mention this in any of his own statements though.