Judge orders ex-trader 'Fabulous Fab' to pay $825K

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Associated Press

Posted on March 12, 2014 at 1:00 PM

Updated Wednesday, Mar 12 at 1:01 PM

NEW YORK (AP) — A former Goldman Sachs trader dubbed "Fabulous Fab" has been ordered to pay about $825,000 in a securities fraud case stemming from the 2007 mortgage crisis that helped push the country into recession.

A federal judge in Manhattan issued the ruling Wednesday in the civil case against Fabrice Tourre (fah-BREES' TOOR'). He was found liable after a trial last summer.

Tourre says he'll consider "potential next steps" legally but is focusing now on pursuing a doctorate in macroeconomics.

The Federal Securities and Exchange Commission said Tourre misled institutional investors about subprime mortgage securities that he knew were destined to fail. His attorneys depicted him as a scapegoat for the financial crisis.

The SEC says the ruling reflects its intent of "pursuing meaningful sanctions" to punish and deter misconduct.

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