NEW YORK (TheStreet) -- A New York jury found former Goldman Sachs (GS) trader Fabrice Tourre liable Thursday in six of seven fraud claims brought against him by the Securities and Exchange Commission.
The 34 year-old Tourre, a relatively junior Goldman employee, was the only Goldman Sachs employee to be personally charged in a high-profile government case that cost Goldman a record $550 million to settle in 2010. The SEC charged Goldman and Tourre with misleading investors in complex mortgage securities, by failing to disclose they were created in consultation with investors including hedge fund Paulson & Co. that were betting against them.
Tourre's punishment in the federal civil case is still to be determined, but could include fines and possibly a ban from the securities industry.
-- Written by Dan Freed in New York.Follow @dan_freed
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV