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Trial of Goldman Sachs trader opens in New York

July 15, 2013

NEW YORK (AP) — A jury has begun hearing opening arguments in the civil trial of a former Goldman Sachs trader accused of misleading investors about mortgage-backed securities.

The federal case against Fabrice Tourre (fah-BREES’ toor) began Monday.

The Securities and Exchange Commission is seeking unspecified damages against Tourre.

The SEC says he failed to divulge that a billionaire-led company helped pick assets that would decide the value of the investment. At the same time, the company was betting against them.

Goldman Sachs settled charges brought against it, paying $550 million. It faces private litigation related to a package of mortgage-based securities sold to investors in 2007.

Tourre’s lawyers say he’s done nothing wrong.

Tourre grew up in France and moved to the U.S. in 2000 to study at Stanford University in California.

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