Fabrice Tourre, the former Goldman Sachs VP who was found liable for defrauding investors over a failed mortgage transaction, has failed to persuade a federal judge to dismiss the case or give him a new trial.
Reuters reports that U.S. District Judge Katherine Forrest in Manhattan said on Tuesday that jurors did not make a mistake on August 1st in finding Tourre liable on six of the seven civil charges brought by the U.S. Securities and Exchange Commission.
Tourre was accused of engineering a 2007 transaction that enabled a hedge fund run by billionaire John Paulson to reap a big profit while costing investors $1bn in losses.
He argued that his conduct did not amount to fraud, that there was a lack of evidence to support such a finding, and that Forrest had instructed jurors incorrectly on the law.
'None of these arguments has merit,' the judge concluded.
Forrest is still reviewing an SEC request that Tourre pay $1.15m, including a $910,000 fine, as punishment.
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