The defense team for Fabrice Tourre, the former Goldman Sachs trader accused of defrauding investors in a mortgage deal six years ago, began its case about 11:47 a.m. One minute later, it rested without calling any witnesses — not even John Paulson, the billionaire whose hedge fund played a big role in the security at the heart of the trial. That decision, following more than two weeks of witnesses called by the Securities and Exchange Commission, highlights the confidence of Mr. Tourre’s lawyers in their fight against a civil lawsuit by the government over the mortgage deal. The move means that closing arguments from both sides will take place on Tuesday, and the jury will begin deliberations on Wednesday. “Fabrice has testified in the S.E.C.’s case, and ending things short allows the defense to underscore to the jury where the burden of proof lies – that is squarely on the S.E.C.,” said Susan Brune, who successfully defended Matthew M. Tannin, one of two former Bear Stearns executives acquitted in 2009 on charges they misled investors in their mortgage-backed securities hedge funds. [Deabook]
That's Dr. Fab Tourre To You!
Goldman Sachs's former resident of fabulousness is going back to school. The Securities and Exchange Commission alleged in a 2010 complaint that Goldman Sachs and Fabrice Tourre, 33, who is on unpaid leave, defrauded investors in a collateralized debt obligation known as Abacus 2007-AC1. The regulator identified Tourre as a “resident of Kigali, Rwanda,” in court papers filed March 21 in Manhattan federal court. Tourre had been in the African nation’s capital working for a non-governmental organization before beginning his studies at the University of Chicago, according to a person familiar with his travels who declined to be identified because the matter isn’t public. “Tourre is a U.S. resident studying for a Ph.D. in economics at the University of Chicago,” his lawyer, Pamela Rogers Chepiga, said in a statement March 21. Steve Koppes, a university spokesman, said Tourre has been enrolled in the program since September. [Bloomberg]
Fabrice Tourre Will Beat These Financial Crisis Charges, Just Like He Beat The Fightin' Friedmans
(Before his season-ending injury.)