If Fabrice Tourre's Lawyers Are Right, The SEC Are Idiots

Fabrice Tourre In CourtFabrice Tourre

Photo: AP

Fabrice Tourre’s (or should we say Goldman’s?) lawyers are playing the SEC for fools.In their latest attempt to get a judge to dismiss his case, Tourre’s lawyers remind the SEC, “you have no case,” by telling them that they charged him in the wrong country.

From Bloomberg:

[The SEC can’t sue Tourre over Goldman Sachs’ ABACUS deal] because the transaction wasn’t in the U.S.

As you should remember, the SEC sued Tourre and Goldman Sachs for misleading ABACUS investors at the same time this spring. Goldman settled the charges. Tourre wants a fight.

In July, he beseeched the SEC to drop it’s case for a simple reason. The SEC didn’t read the documents correctly.

His exact words were:

We “respectfully refers the court to the [offering materials, documents] for a complete and accurate statement of their contents.”

Now the game of chicken has advanced to the next level. He’s saying their case is null and void simply because the SEC are idiots. There’s another side to the story, of course, but he’s trying to scare them.

Tourre’s lawyers say the SEC can’t sue him because the ABACUS transaction didn’t take place in the U.S.

From Bloomberg:

The Supreme Court ruled in June that U.S. securities laws don’t apply to claims of foreign buyers of non-U.S. securities on foreign exchanges, lawyers for the Goldman executive director said in a court filing yesterday.

The collateralized debt obligations known as Abacus at issue in the SEC’s complaint weren’t listed on any exchange and the sole investor in the notes was a foreign bank that purchased them overseas.

Will it work? We’ll let you know once we’ve consulted some lawyers.

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