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.