SEC seeks $1.1 million-plus from ex-Goldman VP Tourre

The U.S. Securities and Exchange Commission asked a federal judge to order former Goldman Sachs Group Inc vice president Fabrice Tourre to pay more than $1.1 million for his role in a failed 2007 mortgage deal, according to a court document filed Monday in Manhattan federal court. In the SEC’s highest-profile trial stemming from its investigations into causes of the 2008 financial crisis, a federal jury found Tourre liable in August on six of seven civil charges he faced over the deal, which the SEC said cost investors $1 billion in losses. In its lawsuit, the agency said Tourre – who referred to himself as “the fabulous Fab” in an email describing his activities – misled investors by failing to disclose that hedge fund billionaire John Paulson helped choose, and intended to bet against, mortgage securities underlying the deal. Paulson & Co made about $1 billion from his short position on the deal, while investors including ACA Capital Holdings Inc and IKB Deutsche Industriebank AG lost about the same amount, the SEC said.

    

Leave a Reply

Your email address will not be published.