Tourre Jury Hears Closing Arguments

Jul 31 2013 | 9:58am ET

Former Goldman Sachs executive Fabrice Tourre's fate is now in the hands of nine men and women who have spent the better part of a month hearing that he was the lying mastermind of a $1 billion fraud—and that he was just a mid-level employee following standard procedures.

The jury in the Securities and Exchange Commission's civil case against Tourre are set to begin deliberations today, after hearing closing arguments yesterday. Tourre is accused of misleading investors in a collateralized debt obligation about the role and plans of hedge fund Paulson & Co. The SEC alleges that Tourre deliberately withheld from investors Paulson's role in selecting the securities that went into the CDO and misled them about Paulson's plans to short the vehicle, which it did, earning huge profits.

Paulson has not been accused of wrongdoing in the case.

"Investors got half the story, half the trust," SEC lawyer Matthew Martens told the jury yesterday. "Half the truth is a fraud." And, he warned, "he was as willing to trick people in 2013 and he was in spring 2007. He was willing to lie to you on the witness stand to stay out of trouble."

Tourre testified for three days in the case, professing his innocence. His own legal team chose not to call any witnesses, apparently believing that prosecutors had manifestly failed to make their case.

One of Tourre's lawyers, John Coffey, sought to make that point clear, calling the prosecution's reliance on Tourre's playful e-mails to his girlfriend "pathetic."

"He came her to take the stand and told the truth," Coffey said. "It's in your power to clear his name."


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.