US investigators have informed Goldman Sachs, the US investment bank, that it may face securities fraud charges related to an alleged breach of a US Treasury embargo last October.

The move suggests officials at the Securities and Exchange Commission have enough evidence to move the case forward despite claims that the Treasury broke its own embargo. In November, SEC officials said the agency was investigating the suspected leak.

At issue was a press conference held at the Treasury Department on October 31st, in which it was revealed to a small gathering that sales of the 30-year bond would end. Treasury officials said a one-hour embargo was placed on the information, but in the minutes before the end of the embargo, the price of the 30-year bond rose sharply.

It was later admitted by one person present at the briefing that he had told some customers of the news ahead of the embargo deadline.

Goldman Sachs was a customer of Pete Davis, a newsletter writer and Washington consultant, who admitted passing information ahead of the end of the embargo.

According to a source, at least one other firm faces charges related to contacts with Mr Davis.

The SEC has also contacted Mr Davis and told him that he may face fraud charges because of the incident.

Mr Davis's attorney would not comment. Goldman Sachs said: "It is our policy to decline comment on legal matters."

The SEC contacts to Goldman Sachs and Mr Davis were reported in the Wall Street Journal yesterday.

The incident proved at least partially embarrassing to Treasury Department officials when it was revealed that the Treasury's own website released news of the planned suspension of the 30-year bond about 10 minutes before the end of the embargo.

The Treasury launched its own investigation and then later referred the matter to the SEC.