Tourre Asks Judge To Toss Verdict Or Order New Trial

Oct 2 2013 | 10:28am ET

Two months after losing at trial, former Goldman Sachs executive Fabrice Tourre wants a new one.

Better yet, he'd like to have the civil fraud charges against him thrown out entirely, his lawyers wrote in a Monday court filing. Tourre was found liable by a jury in August for misleading investors in a Paulson & Co.-linked collateralized debt obligation.

Tourre's lawyers argued that he received no compensation as a result of the allegedly misleading statements, and that the Securities and Exchange Commission failed to show that the CDO, ABACUS-AC1-2007, was a "domestic offer."

"The libaility verdicts on the other counts are so contrary to the weight of the evidence that it would work a manifest injustice to Mr. Tourre if they were permitted to stand," Tourre's lawyers wrote. They noted that the jury "incorrectly concluded" that Tourre's base salary at Goldman was enough to fulfill the requirement that he be compensated for lying, and that the evidence shows that "his bonus was likely lower" because Goldman lost money on part of the CDO.

The SEC has until the end of the month to respond to the motion. The judge in the case has not yet ruled on what sanctions Tourre will face as a result of the verdict.

The SEC alleged that Tourre deliberately misled investors and the insurer of the ABACUS CDO about Paulson's role in selecting the securities that went into the deal, and about the hedge fund's plan to short it. Paulson has not been accused of any wrongdoing in the case.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...