SEC Highlights 'Wall Street Greed' As Tourre Trial Opens

Law360, New York (July 15, 2013, 7:55 PM EDT) -- Fabrice Tourre deceived investors to satisfy “Wall Street greed,” a U.S. Securities and Exchange Commission lawyer told a jury Monday, claiming that the former Goldman Sachs Group Inc. trader peddled a complicated financial product that was designed to fail.

SEC lawyer Matthew T. Martens told jurors that Tourre committed securities fraud by allegedly failing to tell investors that a Goldman CDO from 2007, called Abacus 2007-AC1, was partially created by a hedge fund manager who bet against it.

The opening statements were the first salvo from...
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