Tourre Fined, Wall Street Left Standing

A federal judge in New York City has ordered former Goldman Sachs Vice President Fabrice Tourre to pay $825,000 for violating federal securities laws and defrauding investors in connection with Goldman’s infamous Abacus derivatives deal with hedge fund manager John Paulson.

In April 2010 the SEC charged Goldman Sachs and Tourre with securities fraud.

In July 2010 Goldman settled and paid the SEC and investors $550 million.

In August 2013 Tourre was found liable on six of seven counts by a federal jury in New York City.

“We’re pleased that the judge’s decision imposes the disgorgement amount we recommended as well as other significant penalties for providing false marketing materials to investors,” said Securities and Exchange Commission Enforcement Director Andrew Ceresney. “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.”

Not so says Dennis Kelleher, president of Better Markets.

“Obtaining a big fine against one low level Goldman vice president, however much deserved, cannot hide the indefensible record of failure at the SEC and the Department of Justice to charge a single senior executive at any Wall Street bank for causing the worst financial crash since 1929 and the worst economy since the Great Depression of the 1930s,” Kelleher said.  “Systemic recklessness, fraud and criminality on Wall Street were at the core of the crash and crisis, which didn’t happen because of one junior employee at one bank. History will judge prosecutors and regulators harshly for abdicating their duty to enforce the law without fear or favor on Wall Street as they do on Main Street.”

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