NEW YORK ( TheStreet) -- A New York jury found former Goldman Sachs (GS - Get Report) 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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts