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

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

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

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