{"id":5494,"date":"2013-07-29T00:00:00","date_gmt":"2013-07-29T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/07\/exgoldman_sachs_bond_trader_fa"},"modified":"2022-05-04T15:04:31","modified_gmt":"2022-05-04T20:04:31","slug":"exgoldman-sachs-bond-trader-fa","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/exgoldman-sachs-bond-trader-fa\/","title":{"rendered":"Both Sides Rest in Ex-Goldman Sachs Bond Trader Fabrice Tourre’s Trial For Alleged Mortgage-Backed Securities Fraud"},"content":{"rendered":"\n

In federal court, both the Securities and Exchange Commission and former Goldman Sachs Group (GS) vice president Fabrice Tourre have both rested their case in the civil trial against the bond trader. Tourre is accused of MBS fraud <\/a>for his alleged involvement in a failed $1 billion investment connected to the collapse of the housing market. After the SEC finished presenting its evidence, U.S. District Judge Katherine Forrest turned down Tourre\u2019s bid to have the securities case against him thrown out. He denies wrongdoing and says that his career is in now in shambles.<\/p>\n

According to the regulator, Tourre purposely misled participants in the Abacus 2007-AC about the involvement of John Paulson\u2019s hedge fund Paulson and Co. The Commission contends that Tourre concealed that Paulson helped select the portfolio of the subprime MBS underlying Abacus\u2014a $2 billion offering linked to synthetic collateralized debt obligations. The latter then shorted the deal by betting it would fail. <\/p>\n

The SEC\u2019s complaint points to Tourre as primarily responsible for the CDO, which it says says he devised and prepped marketing collateral for and was in direct contact with investors. The regulator believes that by failing to disclose Paulson\u2019s role, Tourre broke the law. They also contend that instead the bond trader instead told customers that as an Abacus investor, Paulson\u2019s hedge fund expected the securities to go up. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In federal court, both the Securities and Exchange Commission and former Goldman Sachs Group (GS) vice president Fabrice Tourre have both rested their case in the civil trial against the bond trader. Tourre is accused of MBS fraud for his alleged involvement in a failed $1 billion investment connected to the collapse of the housing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3752,3947,3757],"tags":[],"class_list":["post-5494","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-financial-firms","category-goldman-sachs","category-mortgagebacked-securities"],"yoast_head":"\nBoth Sides Rest in Ex-Goldman Sachs Bond Trader Fabrice Tourre's Trial For Alleged Mortgage-Backed Securities Fraud — Investor Lawyers Blog — July 29, 2013<\/title>\n<meta name=\"description\" content=\"In federal court, both the Securities and Exchange Commission and former Goldman Sachs Group (GS) vice president Fabrice Tourre have both rested their — July 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