The SEC accuses Tourre of misleading investors in a mortgage investment called Abacus AC1 by not telling them that a hedge fund was involved in selecting the underlying assets and betting against it.
SEC Brands Tourre A Liar And Fraud In Closing
Tourre, wearing a black suit and orange tie, sat with his counsel as the lawyers made their opening arguments. He did not speak during Monday's proceedings, although he is expected to testify later in the trial. Martens said Tourre, the principal Goldman employee involved in the Abacus deal, had a duty to be truthful with investors. Instead, he hid "critical information" in order to get them to buy in.
Goldman Sachs Paid Fabrice Tourre More Than $, During Leave For SEC Lawsuit | HuffPost
Tourre also misled ACA Capital Holdings Inc, a third-party firm ostensibly brought in to select the securities included in the CDO, into believing that Paulson was an equity investor in Abacus rather than taking a short position, Martens said. A different firm decided not to participate as ACA's portfolio selection agent when Tourre told it Paulson was going short, Martens said.
Martens also displayed a much-cited email sent on Jan. Paulson earned about the same amount thanks to his bet, the SEC says.
SEC Lawyers Seek to Prove Deal Was Improperly Described
Chepiga, Tourre's lawyer, countered in her own opening arguments that her client had not misled investors or ACA. She said ACA knew at the time that Paulson was widely reported to be engaged in an aggressive bet against the U. ACA, not Paulson, picked the securities tied to Abacus, she said, adding that ACA rejected dozens of securities that Paulson wanted included and ran a sophisticated computer analysis before signing off on them.
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In the case of a deal such as Abacus, known as a synthetic collateralized debt obligation, it would be usual to consult both long and short investors, which by design have both long and short investors involved. SEC Head. As for Tourre's email to his girlfriend, Chepiga said it was irrelevant, calling it "an old fashioned love letter" and noting it was referencing a Financial Times article, which he attached.
Earlier on Monday, the court picked five women and four men as jurors out of a pool of 48 people. They include a retired special education teacher, a former retail broker now teaching art history, a recent medical school graduate and an Episcopal priest. District Judge Katherine Forrest excused some potential jurors after they said they had views about Wall Street or the role of banks in the financial crisis. The first juror to be excused said he had "a fairly jaundiced view of Wall Street. Read More : Banks and trust: No honor system here.
Trial of ex-Goldman trader is about greed, SEC says
Forrest also quizzed jurors on whether they had ever heard of Abacus, Tourre or his nickname, "Fabulous Fab. While the watchdog has seen some success in extracting settlements from banks following the crisis, it has so far struggled to hold individuals accountable.
The charges were rejected by a federal jury in New York in July last year. Tourre, should he be found guilty, could be fined, forced to reimburse investors and be banned from the trading floor for life.
do.patriciorivera.com/the-effects-of-equipment-age-on-spare-parts.php Since leaving Goldman Sachs in the wake of the SEC allegations, Tourre reportedly spent time in Rwanda where he worked as a volunteer helping to create business plans for local farmers , before returning to the US to study for a Ph. The content you requested does not exist or is not available anymore.