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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR