Fabrice Tourre, the former Goldman Sachs trader found liable of six counts of securities fraud, has
requested a new trial.
In August, the SEC convinced a jury that Tourre misled investors regarding a pre-crisis mortgage-backed securities deal.
The New York Times’ Susanne Craig reports that Tourre’s lawyers have filed a motion citing a lack of evidence. They are asking a federal judge to give Tourre a new trial or throw out the charges against him. From the Times:
Mr. Tourre received an annual base salary and bonus during his years at Goldman. His lawyers said no evidence was presented to show his compensation was linked to the transaction at the heart of the case, and in fact “the only logical inference from the evidence was that his bonus was likely lower” at one point because Goldman had a piece of the trade that lost money.
The jury, during deliberations, asked about Mr. Tourre’s compensation and Mr. Tourre’s lawyers said the jury “incorrectly concluded” that the trader’s base salary was sufficient to fulfil the requirements needed to return a finding of liable.
Tourre has been described by many as a patsy, a fall guy for Wall Street’s pre-crisis sins. Though he worked at Goldman, he was a small cog in an economic machine that fuelled a mortgage bubble (there are tons of “vice presidents” on Wall Street).
Still, the case became one of the government’s highest profile attempt to prosecute those culpable for the financial crisis.
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