Judge Rejects Tourre Request For Partial Appeal

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of