Fabrice Tourre Asks for Reversal, New Trial in SEC CaseBob Van Voris and Phil Milford
Fabrice Tourre, the ex-Goldman Sachs Group Inc. vice president found liable for his role in a failed $1 billion investment, asked for a reversal of the verdict and a new trial of the U.S. Securities and Exchange Commission case.
Tourre, 34, is entitled to a judgment in his favor under civil rules if a court finds that a reasonable jury wouldn’t perceive enough evidence against him, one of his lawyers, Pamela Chepiga, said in a memorandum filed with U.S. District Court in Manhattan yesterday.
“The SEC has failed to adduce evidence” of liability, including “any intent to defraud,” Chepiga said in the filing while asking U.S. District Judge Katherine Forrest to dismiss the SEC claims. “Mr. Tourre testified that he never intended to mislead anyone.”
The SEC accused Tourre, a native of France, of intentionally misleading investors in a subprime mortgage entity called Abacus about the role played by Paulson & Co., the hedge fund of billionaire John Paulson which helped choose the portfolio of securities, then made a billion-dollar bet it would fail.
Jurors in the case determined Aug. 1 that Tourre couldn’t hide behind his age and relative lack of stature within Goldman Sachs to avoid responsibility. Tourre faces unspecified fines and potential exclusion from the securities industry.
The case is SEC v. Tourre, 10-cv-03229, U.S. District Court, Southern District of New York (Manhattan).