SEC tells jurors in fraud lawsuit of Fabrice Tourre’s make believe

City A.M. Reporter
FORMER Goldman Sachs trader Fabrice Tourre should not be allowed to get away with deceiving investors in a mortgage deal that went bad in the financial crisis, an SEC lawyer told jurors who will decide a civil fraud lawsuit brought by the regulatory agency.

On the final day of a more than two-week trial, US Securities and Exchange Commission lawyer Matthew Martens said to the jurors that the one-time Goldman Sachs vice president sold investors on a “land of make believe” that cost them $1bn.

“Now Mr. Tourre wants you to live in that land as well,” Martens said.

The arguments came in the SEC's closing salvo in what has become the highest-profile trial stemming from its investigations of the 2008 financial crisis.

The trial centres on a synthetic collateralised debt obligation based on subprime mortgage securities known as Abacus 2007-AC1.

In closing arguments by the defence, lawyer Sean Coffey depicted his client as a “remarkable young man” facing an “unjust charge”.