Tuesday, 26 July 2016
Last updated 4 hours ago
Oct 18 2011 | 9:26am ET
Goldman Sachs vice president Fabrice Tourre has been denied permission to immediately appeal one of the SEC’s legal claims against him.
Tourre is the only individual charged in the case stemming from Paulson & Co.'s alleged role in putting together Goldman’s Abacus 2007-AC1 collateralized debt obligation four years ago.
On September 22, Tourres’ lawyers requested permission to make an interlocutory appeal on part of the case related to offers to European banks, arguing that the chance to appeal would remove the need for extensive document review and litigation in several foreign courts.
In rejecting the request, reports Reuters, U.S. District Judge Barbara Jones said "it is a basic tenet of federal law to delay appellate review until a final judgment has been entered."
Jones had earlier upheld the SEC’s claim about offers of the product that it accused Mr. Tourre of making to Germany’s IKB Deutsche Industriebank and the Netherland’s ABN Amro Holdings.
The U.S. Securities and Exchange Commission sued Torre and Goldman in April 2010, alleging they failed to tell investors that hedge fund billionaire John Paulson had helped choose and bet against the subprime residential mortgage-backed securities in the Abacus CDO. Paulson has not been charged with any wrongdoing.
Tourre, who is on leave from Goldman, has denied the charges.
Goldman settled its part of the litigation for $550 million in July 2010 without admitting wrongdoing.