SEC Bashes Tourre's Attempt To Kill Fraud Suit

Law360, New York (October 14, 2010, 12:23 PM EDT) -- The U.S. Securities and Exchange Commission has faced down Goldman Sachs & Co.’s Fabrice Tourre’s attempt to short-circuit the agency’s fraud suit, emphasizing that the transaction Tourre masterminded, which lost investors $1 billion, occurred in the U.S. and was therefore subject to federal securities laws.

On Wednesday, the SEC urged Judge Barbara S. Jones of the U.S. District Court for the Southern District of New York to reject the embattled bond trader’s claim that the collateralized debt obligation transaction at issue occurred overseas, beyond the reach...
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