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Court orders $1m from ex-Goldman trader Tourre

Published on Mar 13, 2014 2:25 AM

NEW YORK (AFP) - A US judge Wednesday ordered Fabrice Tourre to pay more than US$825,000 (S$1,04 million) after a jury found the former Goldman Sachs trader defrauded investors in selling mortgage-linked securities before the housing bust.

US District Judge Katherine Forrest said a two-week trial last summer showed that Tourre misled investors over the risk of the investments sold by Goldman in 2007.

The securities cratered after a housing bust, leaving the investors with large losses.

Forrest ordered $650,000 in civil penalties and $175,463 plus three percent in disgorgement of ill-gotten gains.

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