Tourre Wants 'Fabulous' E-Mails Tossed

Jul 10 2013 | 1:36pm ET

Fabrice Tourre, the former Goldman Sachs executive accused of misleading investors in a Paulson & Co.-linked collateralized debt obligation, gave himself the nickname, "the fabulous Fab," but he appears to have no pride in the authorship.

Tourre's lawyers have asked that a number of e-mails, including the "fabulous Fab" missive, be excluded from his upcoming civil trial. The Securities and Exchange Commission alleges that Tourre misled investors about Paulson's role in creating the CDO in question, ABACUS-AC1.

Paulson, which has not been accused of any wrongdoing, allegedly had a hand in picking the securities that went into the $1 billion CDO, which it made a killing shorting. Goldman settled the allegations against it for $1 billion.

In one e-mail, Tourre writes that he is "not feeling too guilty about this" and that it is "amazing how good I am in convincing myself." In the "fabulous Fab" e-mail, he wrote, in French, that "the whole building is about to collapse anytime now," and said he was "the only potential survivor."

Tourre's lawyer argued at a hearing yesterday that "these e-mails have nothing to do with the case we're about to try." Prosecutor Matthew Martens disagreed, telling the judge, "There is no other way to tell his state of mind."

U.S. District Judge Katharine Forrest handed a limited victory to Tourre yesterday, ruling that his lawyers will be permitted to question Laura Schwartz, who was Tourre's "primary contact" at ACA Financial Guaranty, which both insured and invested in the CDO. Schwartz was the target of an SEC probe into another CDO, but the regulator last month decided not to file charges. Tourre's lawyers will be allowed to question her on a limited basis about that decision.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...