SEC Adds a Charge to Fabulous Fab’s Rap Sheet

“Fabulous” Fabrice Tourre, the Goldman Sachs trader at the center of a fraud case involving Goldman’s Abacus collateralized debt obligation, faces an additional complaint from the Securities and Exchange Commission.

Bloomberg reports that the SEC is now accusing Tourre of providing Goldman with the more serious charge of “substantial assistance” in snookering investors into buying a CDO made of subprime crap that was doomed to fail.

“The London-based trader, accused of helping the Wall Street firm defraud investors in a product known as Abacus, may face trial after failing to win dismissal of the SEC’s case,” says Bloomberg.

This past summer, the SEC settled a similar suit against Goldman Sachs for $550 million and a promise from Goldman to change some of its business practices.

mtaylor [at] | @mbrookstaylor

SEC Adds a Charge to Fabulous Fab’s Rap Sheet