Court Imposes Fine on Ex-Goldman Sachs Trader for Defrauding Investors

The U.S. District Court of the Southern District Court of New York ruled that ex-Goldman Sachs trader, Fabrice Tourre, must pay over $800,000 in civil penalties in order to settle the SEC's charges that Tourre misled investors in mortgage deals leading up to the financial crisis. Judge Katherine Forrest, who presided over the case, barred Goldman Sachs from reimbursing Tourre. However, the court did not bar any other third party from reimbursement.

According to the August 2013 order, Tourre was found guilty in six of the seven fraud charges that the SEC brought against him for defrauding investors during a mortgage deal while he was a trader at Goldman Sachs.

See: Opinion and Order; SEC v. Goldman Sachs Co.