Tourre Doesn’t Deserve New Trial in Abacus Case, SEC SaysEdvard Pettersson and Bob Van Voris
Fabrice Tourre, the ex-Goldman Sachs Group Inc. vice president found liable for his part in a failed $1 billion investment, should be denied a new trial, the U.S. Securities and Exchange Commission said.
“A wealth of evidence supports the jury’s correct conclusion that Tourre violated the securities laws,” the SEC said today in a filing in Manhattan federal court. “Tourre has identified no missing fact, legal flaw, or miscarriage of justice that would warrant the extraordinary relief he seeks, setting aside a jury’s verdict.”
Tourre, 34, on Sept. 30 asked for judgment in his favor or a new trial, arguing that the jury’s verdict wasn’t supported by the evidence.
The SEC accused New York-based Goldman Sachs and 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.
Goldman Sachs settled with the SEC for $550 million in July 2010.
Jurors in the case determined on Aug. 1 that Tourre couldn’t hide behind his age and relative lack of status within Goldman Sachs to avoid responsibility. He 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).