Being young and a lowly employee is no excuse for screwing up

Gavel

Be warned.

Former Goldman Sachs VP Fabrice Tourre may have lost his case because jurors rejected his defense that as a junior employee he wasn’t primarily responsible for the failed $1bn transaction.

Bloomberg News reports that Tom Gorman, a former lawyer with the Securities and Exchange Commission’s Enforcement Division, who is now in private practice, said in an interview that: 'Being 28 years old and one of several employees of Goldman Sachs isn’t a defense'.

Tourre was a highly paid specialist working in a particular area who asked people to invest billions of dollars in a product he created, Gorman said. Tourre’s lawyers portrayed him as a young employee who was one of many Goldman Sachs employees who worked on the 2007 deal known as Abacus that had subprime mortgage-backed securities underlying the transaction.

The SEC accused Tourre, now 34, of intentionally misleading participants in Abacus about the role played by Paulson & Co., the hedge fund of billionaire John Paulson, which helped choose the portfolio of securities, then made a billion-dollar bet it would fail. Tourre was found liable by a jury in Manhatten yesterday on six of seven claims.

Jurors, who reached a verdict on the second day of deliberations Thursday didn’t initially say why they voted against Tourre.

As she left court, juror Beth Glover, 47, an Episcopal priest from the Riverdale section in the Bronx, said 'It was a long, slow process.'

To access the complete Bloomberg article hit the link below:

Tourre Found Liable in SEC Case Claiming $1 Billion Fraud

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