New York (HedgeCo.Net) – Fabrice Tourre, the former Goldman Sachs hedge fund trader with the nickname “Fabulous Fab” has been denied a new trial by Judge Katherine Forrest in Manhattan.
Tourre was found liable for fraud by a jury in Manhattan on six of seven counts of fraud in August 2013. The hedge fund trader claims that that “his conduct did not amount to fraud, that there was a lack of evidence to support such a finding, and that Forrest had instructed jurors incorrectly on the law.” Bloomberg reports. Judge Forrest said “None of these arguments has merit.”
“Forrest is still reviewing an SEC request that Tourre pay $1.15 million, including a $910,000 fine, as punishment. Goldman is paying his legal fees, and an appeal is possible after a penalty is assessed.” Bloomberg says.
The Wall Street Journal reports that the SEC has filed a request that Tourre transfer and keep more than a million dollars in his US account at all times after it was discovered he was trying to transfer money out of his UK account as a “loan to a family member.” The SEC wants the former Goldman Sachs trader to have sufficient funds in his US account to pay the SEC fines.
The SEC in 2010 filed securities fraud charges against Goldman, Sachs & Co. and Tourre, for making material misstatements and omissions in regards to a CDO that contributed to the financial crisis by magnifying losses associated with the downturn in the United States housing market. The failed mortgage deal cost investors approximately $1 billion.
“The SEC had accused Tourre of misleading institutional investors about subprime mortgage securities that he knew were doomed to fail, setting the stage for a valued Goldman hedge fund client, Paulson & Co., to secretly bet against the investment.” USA Today said.
The SEC fined Goldman Sachs over $550 million, ordering a sweeping review of the companies business standards. SEC lawyers called Torre “The face of Wall Street greed.”
Alex Akesson
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