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Thursday
Aug012013

Ex-Goldman Sachs Trader Found Liable in Fraud Case

Hemera/Thinkstock(NEW YORK) -- A former Goldman Sachs trader has been found liable in one of the most prominent cases to stem from the financial crisis. The Securities and Exchange Commission, describing Fabrice Tourre as the face of "Wall Street greed," convinced a New York jury to find him liable for misleading investors about a mortgage investment he created.

“We are gratified by the jury’s verdict finding Mr. Tourre liable for fraud. We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street," Andrew Ceresney, Co-Director of the SEC's Division of Enforcement, said after Thursday's ruling. "As shown by this verdict, we proved that Mr. Tourre, as a Goldman Sachs Vice President, put together a complicated financial product that was secretly designed to maximize the likelihood that it would fail, and marketed and sold it to investors without appropriate disclosure.” 

Goldman Sachs said it remains focused on being more transparent.

“As a firm, we remain focused on being more transparent, more accountable, and more responsive to the needs of our clients," said the firm, which was not accused of any wrongdoing in this case.

It is unclear exactly what Tourre's penalty will be, but the man who once called himself "Fabulous Fab" faces a possible ban from the industry.

Copyright 2013 ABC News Radio