Big fine imposed on ex-Goldman trader Tourre in SEC case - News and Current Events | futures io social day trading
futures io futures trading


Big fine imposed on ex-Goldman trader Tourre in SEC case
Updated: Views / Replies:132 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Big fine imposed on ex-Goldman trader Tourre in SEC case

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Big fine imposed on ex-Goldman trader Tourre in SEC case

(Reuters) - A U.S. judge on Wednesday ordered former Goldman Sachs Group Inc trader Fabrice Tourre to pay more than $825,000 after a jury found him liable for defrauding investors in a subprime mortgage product that failed during the financial crisis.

The decision by U.S. District Judge Katherine Forrest in Manhattan came in one of the prominent Wall Street cases linked to the crisis, and one of the few in which an individual was held personally responsible for wrongdoing.

Tourre was ordered to pay $650,000 in civil fines, and give up an additional $175,463 bonus plus interest linked to the transaction at the heart of the U.S. Securities and Exchange Commission case.

The total payout fell below the roughly $1.15 million, including a $910,000 fine, that the SEC had sought.

But the judge said a stiff sanction for the 35-year-old Frenchman was appropriate, saying Tourre's fraud lasted for several months and noting what investigators said were his false emails and misleading materials sent to investors.

"He has shown no remorse or contrition," Forrest added, referring to Tourre. The judge also forbade Goldman from paying Tourre's fine.

Goldman in July 2010 reached a related $550 million settlement with the SEC. It did not admit wrongdoing but acknowledged and expressed regret that its marketing materials were incomplete.

SEC enforcement chief Andrew Ceresney welcomed Wednesday's decision, including penalties he characterized as "significant."

"The ruling reflects the SEC's intent of pursuing meaningful sanctions to punish individuals responsible for misconduct and deter others from violating the federal securities laws," he said in a statement.

Tourre resigned from Goldman in December 2012, and is pursuing a doctorate in economics at the University of Chicago.

In a statement, he said he was "deeply grateful for the unwavering support of my family and friends as I consider potential next steps in the legal process."

SYMBOL OF THE MELTDOWN

Tourre became a symbol of the financial meltdown after the SEC sued him and Goldman in 2010 for misleading investors in a synthetic collateralized debt obligation, or CDO, linked to mortgages called Abacus 2007-AC1.

He became widely known as "Fabulous Fab" after using that nickname in an email cited in the SEC lawsuit.

The SEC accused Tourre of concealing from investors how Paulson & Co, the hedge fund of billionaire John Paulson, had helped put Abacus together and had bet it would fail.

It also accused Tourre of misleading ACA Capital Holdings Inc, which helped choose Abacus assets, into thinking Paulson would be an equity investor in the CDO, rather than bet the other way as part of a massive wager against subprime mortgages.

Paulson, meanwhile made about $1 billion by shorting Abacus, while investors lost the same amount, the SEC said.

"The fraud on ACA was critical to making the transaction work; without ACA as portfolio selection agent, Goldman would not have been able to convince others to invest in the equity of the transaction," Forrest wrote.

In August, a federal jury found Tourre liable on six of seven civil charges related to Abacus.

Tourre had been slated to teach an honors economics class this spring, but a University of Chicago spokesman on March 4 said those plans had been scrapped. No reason was given.

SENDING THE RIGHT MESSAGE

Tourre's lawyers had fought against any ban on Goldman reimbursing their client, saying it would be unprecedented, even as they said he had every intention of paying any penalty out of his own pocket.

The judge, however, said letting Goldman reimburse Tourre would send the wrong message to others mulling illegal conduct, though the defendant could seek reimbursement from others.

"To permit Tourre to obtain reimbursement from Goldman, which the jury in this case found to be a co-violator of the securities laws, would undermine the purposes of the civil penalty statutes - to punish the individual violator and to deter future violations," she wrote.

Goldman did pay Tourre's legal fees, and has said it had no agreement with Tourre to reimburse him for penalties.

A spokesman for the bank declined to comment on Wednesday.

Forrest also denied an SEC request for an injunction barring Tourre from future securities law violations, saying there was no evidence he planned to return to the industry after finishing his studies in June 2016. But she said the SEC could reapply if he returns in the next three years.

The judge's decision drew mixed reactions.

"This really sends a loud and clear message that this court is not going to tolerate this conduct," said David Marder, a partner at Robins, Kaplan, Miller & Ciresi and a former SEC lawyer.

But Dennis Kelleher, chief executive of the non-profit organization Better Markets, said a big fine cannot hide the government's "indefensible" failure to have brought criminal charges against senior Wall Street executives over the financial crisis.

"Wall Street recklessness, fraud and criminality were at the core of the crash and crisis," he said. "History will judge prosecutors and regulators harshly for abdicating their duty to enforce the law without fear or favor on Wall Street as they do on Main Street."

Big fine imposed on ex-Goldman trader Tourre in SEC case | Reuters

Reply With Quote

Reply



futures io > > > > Big fine imposed on ex-Goldman trader Tourre in SEC case

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
U.S. SEC dealt blow in financial-crisis case kbit News and Current Events 0 May 22nd, 2012 09:59 PM
SEC, Goldman to settle research case for $22 million kbit News and Current Events 0 April 12th, 2012 10:28 AM
Ex-SEC lawyer said to settle Stanford-linked case kbit News and Current Events 0 January 10th, 2012 07:43 PM
The Fine Print of Goldman’s Subprime Bet kbit News and Current Events 0 June 7th, 2011 07:59 AM
Settlement With SEC Is Win for Goldman Despite Record Fine Quick Summary News and Current Events 1 July 16th, 2010 02:24 AM


All times are GMT -4. The time now is 06:40 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.09 seconds with 19 queries on phoenix via your IP 54.90.92.204