Ex-Goldman Executive Tourre Should Pay Fine, SEC Says
Fabrice Tourre, the ex-Goldman Sachs Group Inc. (GS) 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 firstname.lastname@example.org