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Paulson Won’t Testify in Tourre Fraud Trial, Defense Says

Paulson & Co. Founder John Paulson
Paulson & Co. Founder John Paulson, pictured, won’t be testifying in the civil fraud trial of former Goldman Sachs Group Inc. Vice President Fabrice Tourre. Photographer: Jin Lee/Bloomberg

July 29 (Bloomberg) -- John Paulson, founder of Paulson & Co., won’t be called to testify in the civil fraud trial of former Goldman Sachs Group Inc. Vice President Fabrice Tourre, a defense lawyer said.

Defense attorney John “Sean’” Coffey told U.S. District Judge Katherine Forrest today in Manhattan federal court that the billionaire hedge-fund founder won’t be testifying. Tourre’s lawyers said earlier in the trial that Paulson, 57, might be called to the witness stand.

The U.S. Securities and Exchange Commission claims Tourre intentionally misled participants in a 2007 deal known as Abacus about the role played by Paulson & Co. The SEC claims Tourre hid that Paulson helped choose the portfolio of subprime mortgage-backed securities underlying Abacus, then made a billion-dollar bet it would fail.

Tourre testified last week that he did nothing wrong. Forrest said today that closing arguments in the trial could begin as early as tomorrow.

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

To contact the reporter on this story: Bob Van Voris in Manhattan federal court at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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