Tourre, Accused In Paulson CDO Case, Leaves Goldman

Feb 1 2013 | 1:37pm ET

The Goldman Sachs executive accused of defrauding investors in a Paulson & Co.-linked collateralized debt obligation has left the bank.

Fabrice Tourre was put on paid leave almost three years ago, just a few months before Goldman paid $550 million to settle fraud allegations related to the CDO, Abacus-2007-AC1. Tourre went on unpaid leave late in 2011, when he began a graduate degree in economics at the University of Chicago, and left the firm at the end of last year.

Tourre is the only remaining defendant in the SEC's Abacus case. While his employer settled, Tourre has fought the charges; Goldman will continue to foot his legal bills.

A civil trial is set for July. The SEC alleges that Tourre "knowingly, recklessly or negligently" misrepresented the CDO, which the SEC says was structured and marketed on behalf of Paulson, one of the facts that the regulator said was withheld from investors.

Paulson has not been accused of wrongdoing in the case, although it has been sued by the CDO's insurer. The hedge fund denies any wrongdoing.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.