Ex-Goldman banker Fabulous Fab ordered to pay $825,000 fine

FORMER Goldman Sachs employee Fabrice Tourre was served an $825,000 (£496,840) fine yesterday, bringing an end to one of the best-known legal cases surrounding the financial crisis.

Tourre came to be known as “Fabulous Fab” due to a string of lurid and damning emails which emerged during legal proceedings. He had already been found liable for defrauding investors during the sub-prime crisis in August last year.

The judge also specified that Goldman will not be allowed to pay the fine on Tourre’s behalf.

District judge Katherine Forrest handed down the fine to Tourre, saying that he “has shown no remorse or contrition”. The Securities and Exchange Commission (SEC) had sought a larger financial penalty, which would have run to around $1.5m.

The SEC had also pursued Goldman Sachs over the issue, but the bank reached a $550m settlement without admitting wrongdoing nearly four years ago.

Despite a request from the SEC to the court, Tourre will not be banned from the securities business in the future.

The former designer of derivatives is currently studying for a doctorate in economics at the University of Chicago. Though previously the university had planned for Tourre to teach an undergraduate economics module as part of his training, but the decision was reversed earlier this month.

Tourre said he was grateful for the “unwavering support” of his family and friends during the case.