Free Market Evaluation - Send us your resume and we will give you free feedback
Judge Rules that Dole CEO Must Repay Shareholders
Judge Rules that Dole CEO Must Repay Shareholders
Passengers Get Lousy Drink Voucher Whereas Lawyers Get Millions
Passengers Get Lousy Drink Voucher Whereas Lawyers Get Millions
Jared Fogle to Plead Guilty to Possession of Child Pornography
Jared Fogle to Plead Guilty to Possession of Child Pornography
Settlement Reached With Some Banks for Forex Manipulation
Settlement Reached With Some Banks for Forex Manipulation
Legal Job Listings
Download PDF

SEC Seeks Former Goldman Sachs Trader with Civil Fraud Charges View Count: 228

The Securities and Exchange Commission is going after former vice-president of Goldman Sachs Fabrice Tourre for misleading investors – a fairy tale scenario, the judge says. U.S. District Judge Katherine B. Forrest said it’s as if he handed Little Red Riding Hood an invitation to her grandmother’s house, failing to to mention the invitation was written by the big bad wolf. Only these aren’t “hooded children but rather large financial institutions, operating in a dog-eat-dog world.” So wolves preying on wolves, in other words.

What

 job title, keywords

Where

 city, state, zip



This went down in 2007 and is said to have contributed to the financial crises the following year. Though Goldman Sachs has settled this issue with $550 million in payments, it still faces a private litigation and federal securities class action lawsuit. The big bad wolf seems to be the role of hedge fund Paulson & Co., who helped choose what assets would valuate the investment. They chose to make the bet regarding mortgage-based securities.

The aftermath thereof was that the investors lost more than $1 billion while Paulson gained more than $1 billion, as the SEC alleges.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The SEC will be calling on Goldman Sachs employees for witnesses, but the defense scoffs at their attempt, saying the SEC has reviewed over 12 million pages of documents, and thousands of tapes and transcripts, and hasn’t found anything incriminating for their troubles.

“Fabrice Tourre has done nothing wrong,” read a statement from his lawyers, Pamela Chepiga and Sean Coffey. “He is confident that when all the evidence is considered, the jury will soundly reject the SEC’s charges.”

Specifically, his team has to revolt the idea that Tourre made misstatements and omissions to investors in a portfolio of 90 sub-prime and mid-prime residential mortgage backed securities, as Yahoo! news reported. The SEC is going after him for violating securities law. The trial is set to begin on Monday.

SEC Seeks Former Goldman Sachs Trader with Civil Fraud Charges by

Tagged: , , ,

Daniel June Posted by on July 15, 2013. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Related Posts: