Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ex-Goldman Executive Tourre Should Pay Fine, SEC Says

Dec. 17 (Bloomberg) -- Fabrice Tourre, the ex-Goldman Sachs Group Inc. vice president found liable for his part in a failed $1 billion investment, should pay $1.1 million in fines, disgorgement and interest, the U.S. Securities and Exchange Commission said.

Tourre, 34, was found liable Aug. 1 after a jury trial at which the SEC claimed he intentionally misled investors in a subprime mortgage vehicle called Abacus. The agency alleged Tourre lied about the role played by billionaire John Paulson’s Paulson & Co. hedge fund, which helped choose the portfolio of securities underlying Abacus then made a billion-dollar bet it would fail.

“These remedies are appropriate because the conduct that the SEC proved at trial was egregious,” the SEC said in a brief filed yesterday in federal court in Manhattan. “Tourre, a licensed securities professional, took the lead in structuring a financial product that was secretly designed to maximize its potential for failure.”

The SEC asked U.S. District Judge Katherine Forrest to impose a fine of $910,000 and order that he disgorge $175,463 of his 2007 bonus plus $62,858 in interest. The agency is also seeking an order barring Tourre from violating the securities laws in the future.

Chris Kittredge, a spokesman for Tourre with the firm Sard Verbinnen & Co., declined to comment on the SEC filing.

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 federal court in Manhattan at rvanvoris@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.