Aug 2, 2013 12:49 AM by Kirsten Bennett
NEW YORK (AP) - A New York City jury has found that a former Goldman Sachs trader known as "Fabulous Fab" is liable in a massive mortgage securities fraud case.
The Securities and Exchange Commission had accused Fabrice Tourre (fah-BREES' toor) of scheming to sell investors subprime mortgage securities that he knew would fail.
Authorities said the maneuver allowed a hedge fund and its billionaire president, John A. Paulson, to make $1 billion by betting against the investment.
Tourre grew up in France and moved to the U.S. in 2000 to study at Stanford. He insisted at trial that he never misled anyone.
Goldman Sachs settled its end of the case, agreeing to pay $550 million.