Player In Goldman Deal Says She Was Misled About Abacus

Law360, New York (July 23, 2013, 7:25 PM EDT) -- A key government witness in the fraud trial against former Goldman Sachs Group Inc. trader Fabrice Tourre said Tuesday that she was misled about the allegedly built-to-fail Abacus transaction, though stopped short of saying that Tourre himself lied.

Laura Schwartz, a former senior managing director at ACA Management LLC, said she was not told that a hedge fund that helped structure the Abacus transaction, Paulson & Co., had actually bet against it. ACA was formally in charge of picking a bundle of residential mortgage-backed securities that...
To view the full article, register now.