NEW YORK, Aug 1 — The jury in the civil fraud trial of Fabrice Tourre, the former Goldman Sachs Group Inc vice president sued by the Securities and Exchange Commission over his role in a failed billion-dollar investment, went home without a verdict after its first day of deliberations.
The jury of four men and five women spent about six hours today considering the case, in which the SEC claims Tourre misled participants in a 2007 transaction known as Abacus.
The SEC claims Tourre hid the role of hedge fund Paulson & Co. in selecting the subprime mortgage bonds behind the investment, then made a US$1 billion (RM3.244 billion) bet they’d fail.
“I want you to go talk to each other about this case,” US District Judge Katherine Forrest told jurors after instructing them in the law to apply to the case.
“Good luck.”
The jury is considering seven claims that Tourre violated US securities laws in the construction and marketing of Abacus. Tourre faces money penalties and a possible lifetime ban from the securities industry if he’s found liable.
The deliberations followed a two-week trial that featured testimony from former Paulson hedge fund executive Paolo Pellegrini and from Tourre himself. Lawyers for Tourre and the SEC stayed close to Forrest’s courtroom throughout the day, awaiting a possible verdict or note from the jury. There were no notes.
The jury will reassemble to continue deliberations tomorrow at 9:30am. – Bloomberg
