A bid by Fabrice Tourre, the Goldman Sachs Group Inc. trader accused of misleading investors in a product linked to subprime mortgages, to delay the start of depositions in the lawsuit should be denied, regulators said.
Tourre yesterday asked a federal judge to postpone the Feb. 1 start of depositions in the lawsuit by the U.S. Securities and Exchange Commission, partly because he is awaiting documents from Dusseldorf, Germany-based IKB Deutsche Industriebank AG, a “purported ‘victim’ of the alleged fraud.” The SEC opposed Tourre’s request.
“Tourre’s highly disruptive 11th-hour request for a stay of depositions should be rejected,” the agency said yesterday in a filing in federal court in Manhattan. “This action has been pending for approximately nine months.”
The SEC sued Goldman Sachs and Tourre on April 16, accusing them of failing to tell investors that hedge fund Paulson & Co. helped pick underlying securities for a collateralized debt obligation and planned to bet against them. The SEC reached a $550 million settlement with New York-based Goldman Sachs in July. Tourre denies wrongdoing.
The case is SEC v. Goldman Sachs, 10-CV-3229, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: David Glovin in New York federal court at email@example.com.
To contact the editor responsible for this story: David E. Rovella at firstname.lastname@example.org.