New York jurors on Thursday found ex-Goldman Sachs trader Fabrice Tourre committed fraud, on six of seven counts he had faced during trial.
The US Securities and Exchange Commission accused the Frenchman of defrauding investors in selling a type of bonds based on risky subprime mortgages that he knew were likely to produce losses.
“We are gratified by the jury’s verdict finding Mr Tourre liable for fraud,” said Andrew Ceresney, co-director of the SEC’s Division of Enforcement.
“As shown by this verdict, we proved that Mr Tourre, as a Goldman Sachs Vice President, put together a complicated financial product that was secretly designed to maximize the likelihood that it would fail, and marketed and sold it to investors without appropriate disclosure.”
The SEC official said the agency would doggedly pursue fraud in the financial system.
“We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street,” he said.
Jury finds ex-Goldman trader Tourre committed fraud
