Share “Judge orders ex-trader 'Fabulous Fab' to...”

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

Published on NewsOK Modified: March 12, 2014 at 12:23 pm •  Published: March 12, 2014
Advertisement

NEW YORK (AP) — A once high-flying Goldman Sachs trader dubbed "Fabulous Fab" was ordered Wednesday to pay more than $825,000 in one of the prominent cases stemming from the mortgage meltdown that helped spark the Great Recession.

Ruling in a civil case that regulators called a symbol of "Wall Street greed," U.S. District Judge Katherine Forrest decided Fabrice Tourre should pay a $650,000 penalty and give up more than $175,000 of his $1.5 million-plus bonus for 2007.

The case was considered one of the most significant legal actions related to the collapse of mortgage-backed securities, the subsequent financial crisis and the conduct of Wall Street banks that sold the securities. Tourre was found liable after a trial last summer.

Tourre, now a doctoral student in macroeconomics at the University of Chicago, said he was weighing his next move in what his lawyers have depicted as a case of scapegoating.

"I remain deeply grateful for the unwavering support of my family and friends as I consider potential next steps in the legal process," he said, but added that he was focused on pursuing his academic career.

The federal Securities and Exchange Commission, which sued Tourre, had asked for higher penalties but hailed the decision as a strong message nonetheless.

"The ruling reflects the SEC's intent of pursuing meaningful sanctions to punish individuals responsible for misconduct and deter others from violating the federal securities laws," SEC Enforcement Director Andrew Ceresney said in a statement.

Continue reading this story on the...