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

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.