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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note