Bloomberg News

Ex-Goldman Sachs VP Tourre’s Liability Verdict Is Upheld (1)

January 07, 2014

A jury verdict against Fabrice Tourre, the former Goldman Sachs Group Inc. (GS:US) vice president found liable for his part in a failed $1 billion investment, was upheld by the trial judge.

U.S. District Judge Katherine Forrest in Manhattan today denied a request by Tourre that she reverse the Aug. 1 verdict or order a new trial in the case. Forrest rejected Tourre’s arguments that the verdict was based on insufficient evidence.

Tourre, 34, was found liable after a jury trial at which the U.S. Securities and Exchange Commission claimed he intentionally misled investors in a subprime mortgage vehicle called Abacus. The agency said 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.

The SEC is seeking $1.1 million in fines, disgorgement and interest from Tourre.

Chris Kittredge, a spokesman for Tourre at Sard Verbinnen & Co. in New York, declined to comment on today’s ruling.

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 rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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