Ex-trader Tourre scheduled for trial Monday

July 14, 2013 at 3:46 PM
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NEW YORK, July 14 (UPI) -- The trial of ex-Goldman Sachs trader Fabrice Tourre in New York could put a face on the carelessness that led to the 2007 collapse, legal experts said.

Tourre, also known as Fabulous Fab, is scheduled to face trial Monday and is accused of knowingly selling bad investments that he expected would unravel, CNNMoney reported.

The trial is the first of its kind since 2007, when two former hedge fund managers, Matthew Tannin and Ralph Cioffi, were accused of misleading investors and were acquitted.

Tourre, if found liable, could face a fine from the Securities and Exchange Commission and could be barred from working in the financial industry, CNNMoney said.

Most of the evidence is based on email messages, an SEC spokesmen said, which allegedly show that Tourre was selling a debt obligation package -- Abacus -- that he expected to fail.

Investors in Abacus lost $1 billion when the housing market fell apart, CNN Money said.

Tourre denies the allegations, and his defense is being paid for by his ex-employer, Goldman Sachs.

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