Wednesday, 26 November 2014
Last updated 4 hours ago
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.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...