Tourre Appeals Order on Depositions in SEC Lawsuit

Goldman Sachs Group Inc. trader Fabrice Tourre, accused of misleading investors in a product linked to subprime mortgages, challenged a judge’s order denying his request to delay government depositions in a U.S. Securities and Exchange Commission lawsuit.

U.S. Magistrate Judge Michael Dolinger, in an order Jan. 26 in Manhattan federal court, denied the application to postpone “previously scheduled domestic depositions.” Dolinger said there will be a conference to discuss the status of later foreign depositions. Tourre on Jan. 27 asked U.S. District Judge Barbara Jones to review Dolinger’s order.

The SEC sued New York-based 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.

Tourre had asked to postpone the Feb. 1 start of the pretrial interviews, partly because he is awaiting documents from Dusseldorf, Germany-based IKB Deutsche Industriebank AG, which he described as a “purported ‘victim’ of the alleged fraud.” The SEC opposed Tourre’s request.

The case is SEC v. Goldman Sachs, 10-cv-03229, U.S. District Court, Southern District of New York (Manhattan).

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