SEC Seeks $1.1 Million Levy Against Tourre

Dec 17 2013 | 12:10pm ET

Former Goldman Sachs executive Fabrice Tourre should pay more than $1.1 million for misleading investors in a Paulson & Co.-linked collateralized debt obligation, the Securities and Exchange Commission told a federal judge yesterday.

The SEC asked U.S. District Judge Katherine Forrest to impose $910,000 in fines on Tourre, who was found liable by a jury in August. The regulator also called for $175,463 in restitution and $62,858.03 in interest—and that he be barred from seeking to have Goldman pay it.

"It is critical that Tourre's conduct be addressed through significant disgorgement and penalties, to ensure that he is punished for his wrongdoing and that he and others are deterred from engaging in such conduct in the future," the SEC said.

Tourre was found to have deliberately misled investors and the insurer of ABACUS-2007-AC1 about Paulson's role in selecting the securities that went into the deal, and about the hedge fund's plan to short it. Goldman paid $550 million to settle the matter with the SEC, and Paulson was never accused of any wrongdoing.


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