Wednesday, 23 July 2014
Last updated 10 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…