- POSTED: 17 Dec 2013 22:58
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US regulators are seeking more than US$1.1 million from ex-Goldman Sachs trader Fabrice Tourre after he was found to have defrauded investors on mortgage bonds.
NEW YORK: US regulators are seeking more than US$1.1 million from ex-Goldman Sachs trader Fabrice Tourre after he was found to have defrauded investors on mortgage bonds.
The Securities and Exchange Commission (SEC) asked in a filing late Monday for US$910,000 in penalties from Tourre, who was found liable of fraud by a federal jury in August over the sale of mortgage-linked securities ahead of the financial crisis.
The SEC is also seeking the disgorgement of US$175,463 in ill-gotten gains and US$62,858.03 in interest.
A New York jury found Tourre liable on six of seven counts of fraud for misleading investors over the risk of the mortgage-linked securities Goldman sold to them in 2007. The securities cratered after the housing bust, leaving the investors with large losses.
Tourre, a French national, gained the nickname "Fabulous Fab" after he called himself that in an email that also made clear he knew the bonds were highly risky.
Goldman Sachs paid US$550 million in 2010 to settle with the SEC on a related investigation.
US District Judge Katherine Forrest will determine the penalty.