The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat
Thursday, 19 January 2017
Last updated 13 hours ago
Jun 19 2012 | 2:03pm ET
A year after getting a judge's approval to continue its case against a Goldman Sachs executive accused of defrauding investors in a Paulson & Co.-linked collateralized debt obligation, the Securities and Exchange Commission is looking for more.
The regulator is looking to have one count tossed by U.S. District Judge Barbara Jones last June reinstated. Jones threw out the aiding and abetting fraud claim against Fabrice Tourre, ruling that a 2010 U.S. Supreme Court ruling denying U.S. legal protection to foreign investors who buy securities abroad barred it. But the SEC said last week that a recent appeals court ruling employed a narrower "test" than Jones used in her ruling last year.
According to the SEC, Tourre, the only individual accused in the CDO case that cost Goldman a $550 million settlement two years ago, and Goldman defrauded investors in the $1 billion ABACUS-AC-1 CDO. The SEC complaint alleges that Tourre "knowingly, recklessly or negligently" misrepresented the CDO, which the SEC says was structured and marketed on behalf of Paulson, a fact that the regulator said was withheld from investors.
Paulson has not been accused of any wrongdoing in regard to the CDO.