A former Goldman Sachs vice president who was found liable for securities fraud over a failed mortgage transaction asked a federal judge to dismiss the U.S. Securities and Exchange Commission case against him or set a new trial.
Reuters reports that Fabrice Tourre said his jury erred in finding him liable on six of the seven civil charges he faced over the transaction, which the SEC said caused $1bn of investor losses, because the evidence was inadequate or was never presented in court.
Letting the verdict stand 'would work a manifest injustice to Mr. Tourre', his lawyers wrote in a Monday night filing in the U.S. District Court in Manhattan.
SEC spokesman John Nester said on Tuesday: 'The motion has no merit and we look forward to filing our response'.
The 1st August verdict was the SEC's first major courtroom victory in a case stemming from the recent financial crisis.
Jurors found Tourre, 34, liable for misleading investors in the 2007 synthetic collateralized debt obligation Abacus 2007-AC1, by concealing how hedge fund billionaire John Paulson helped construct the transaction and bet it would fail.
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