America’s Securities and Exchange Commission has taken former Goldman Sachs London banker Fabrice 'Fabulous' Tourre to court demanding $1.1 million (£674,000) in fines and other penalties for his role in a failed mortgage-backed securities deal which cost investors $1 billion.
The regulator filed its claim in a New York court last night. Tourre, who styled himself in emails as “the fabulous Fab”, was found liable in August of six out of seven charges over the 2007 deal by a federal jury.
The SEC claimed Tourre misled investors by failing to disclose that hedge fund billionaire John Paulson helped choose, and intended to bet against, the mortgage securities underlying the deal.
Paulson & Co made about $1 billion from his short position on the deal. Investors on the other side of the deal lost the equivalent amount.
The SEC added: “It is critical that Tourre’s conduct be addressed through significant disgorgement and penalties, to ensure that he is punished for his wrongdoing.”
The SEC’s claim is for a civil monetary penalty of $910,000, ill-gotten gains of $175,463 and interest of $62,858.
Tourre’s spokesman declined to comment.