ABC News – A former hedge fund executive testified Tuesday at a New York securities fraud trial that the fund purposely bet against investments tied to high-risk mortgages as the housing market teetered on the edge of a meltdown — a strategy that the Securities and Exchange Commission says allowed the fund to make $1 billion.
Paolo Pellegrini, formerly of Paulson & Co. Inc., was called to the witness stand in the SEC civil case against Fabrice Tourre, a former Goldman Sachs trader accused of misleading other investors who lost a fortune by betting that the same investments would rise in value.
