|Ex-Goldman Sachs fraud convict Tourre denied new US trial
A US judge rejected a request by ex-Goldman Sachs trader Fabrice Tourre for a new trial after concluding his argument was without merit.
“Granting a new trial is extraordinary relief which is properly granted only when circumstances are exceptional,'' US District Judge Katherine Forrest wrote in deciding against Tourre's argument.
A New York jury in August found the French national liable on six of seven counts of fraud for misleading investors over the risk of the mortgage-linked securities Goldman sold to them in 2007. The securities cratered after the housing bust, leaving the investors with large losses.
In October, Tourre's attorneys asked Forrest to allow a new trial because the evidence at trial did not support the jury's verdict.
But Forrest rejected all of Tourre's arguments for a new trial. The jury could “reasonably infer'' based on evidence presented at trial that Tourre's communications with a key investor in the transaction “was a necessary part of making the fraudulent scheme a success.''
The Securities and Exchange Commission in December asked Forrest to approve more than US$1.1 million in penalties and disgorgement of ill-gotten gains against Tourre. Forrest has yet to rule on penalties.
Legal analysts have said the Tourre's effort to win a new trial was a necessary step in appealing the decision to a US appeals court.—AFP