Goldman's Tourre Fails To Dismiss SEC Suit

Law360, New York (June 10, 2011, 8:50 PM EDT) -- A New York federal judge on Friday refused to dismiss the U.S. Securities and Exchange Commission's suit against Goldman Sachs Group Inc. executive Fabrice Tourre, who allegedly created a mortgage-backed securities product that was designed to fail.

U.S. District Judge Barbara Jones said that much of the SEC's case against Tourre — the Goldman vice president who created the infamous Abacus 2007-AC1 collateralized debt obligation — was sufficient to go forward.

Tourre is accused of securities fraud for not telling institutional investors that Paulson & Co.,...
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