A federal jury found former Goldman Sachs executive Fabrice Tourre liable on Thursday for duping investors about a shoddy mortgage deal on the eve of the housing market's crash, the first major court victory for the Securities and Exchange Commission in its quest to hold Wall Street accountable for the 2008 financial crisis.
After two days of deliberation, the jury decided Tourre — best known for his nickname, "Fabulous Fab" — was liable for six of the seven charges pursued by the SEC. The agency had accused the 34-year-old Frenchman of defrauding investors out of $1 billion by selling them a financial product that was secretly designed to fail.
The trial was one of the few to emerge from the financial crisis, and cast Tourre as a symbol of Wall Street greed. Only twice before has the SEC brought individuals to trial in cases related to the crisis, and each time with lackluster results. The victory this time around is a boon the agency, which is often criticized as a risk-averse regulator that shies away from court battles in favor of slap-on-the-wrist settlements.
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