Goldman's Tourre Seeks Depositions Delay

Jan 28 2011 | 11:49am ET

The Goldman Sachs banker facing fraud charges in the Paulson & Co. collateralized debt obligation case has asked a judge to delay pretrial depositions until he receives—and has time to review—hundreds of thousands of documents.

Fabrice Tourre's lawyers warned that if the depositions begin as scheduled on Feb. 1, he won't be able to "effectively participate."

"If Mr. Tourre is compelled to proceed with depositions beginning on Feb. 1, 2011, it will be without the benefit of anything like adequate document discovery," his lawyer, Pamela Chepiga, wrote in a court filing. At issue are the 300,000 documents Tourre's legal team has already received and documents he has yet to receive from Germany's IKB Deutsche Industriebank, the largest "purported 'victim' of the alleged fraud."

The Securities and Exchange Commission sued Tourre and Goldman last year, alleging they misled investors, most notably IKB, in a CDO called Abacus-AC1-2007. According to the regulator, that CDO was structured and marketed on behalf of Paulson, which shorted it. Goldman settled with the SEC in July for $550 million.

Today, the SEC scoffed at Tourre's effort to delay the depositions.

"Tourre's highly disruptive 11th-hour request for a stay of depositions should be rejected," the SEC said in its filing. "This action has been pending for approximately nine months."

Tourre is still waiting for a ruling on his bid to dismiss the whole case; he claims that a recent U.S. Supreme Court ruling bars it because it was not a U.S. securities transaction.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...