Fabulous Fabrice Tourre set for a fight to clear his name
FABRICE Tourre, the man named in the SEC allegations of fraud against Goldman Sachs, is today expected to file a defence document in court insisting that he will continue to fight to clear his name.
Tourre’s decision comes in spite of Goldman’s move last week to reach a settlement with the regulator, under which it has agreed to pay a $550m (£359.3m) penalty. The bank acknowledged that its marketing materials for the sub prime mortgage-backed synthetic collateralised debt obligation (CDO) in question were incomplete, though it has not admitted or denied the fraud allegations.
Tourre, who raised his fears over the complexities of the financial products associated with the US housing market in a series of emails to his girlfriend just before the crisis, is thought to be prepared to take his case to trial. His legal costs are being covered by Goldman, where he is still employed on indefinite paid leave.
In the emails, Tourre referred to himself as “Fabulous Fab”, describing the CDO at the centre of the SEC’s case as a “product of pure intellectual masturbation”.
He has engaged Allen & Overy’s Pamela Chepiga to defend him.