Goldman's 'Fab': I didn't do anything wrong

fabrice_tourre.gi.top.jpgFabrice Tourre, who is accused of fraud in a SEC lawsuit over a mortgage-linked investment, prepares to testify before a Senate subcommittee on Capitol Hill on April 27. By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- The Goldman Sachs trader at the center of a deal that led to the firm's recent settlement with the SEC has asked a federal district court to dismiss fraud charges against him.

Through lawyers hired by Goldman (GS, Fortune 500), Fabrice Tourre filed a 13-page document to the Southern District Court in Manhattan asking the court to "dismiss" the Securities and Exchange Commission charges from April that accuse him of deliberately misleading investors.

Tourre, the SEC says, sold a portfolio of real estate investments in 2007 that had a high likelihood of going down in value, because it had been selected by hedge fund Paulson & Co., which had an interest in its failure. Tourre, the SEC says, did not disclose Paulson's role.

Investors lost $1 billion on the deal.

The legal request, filed by firm Allen & Overy, says that the SEC's accusation "fails to allege the existence of any material misstatement or omission."

The document also says, "Neither Mr. Tourre nor Goldman Sachs had a duty to disclose any allegedly omitted information."

"The purported claims against Mr. Tourre and the allegations upon which they are based are improperly vague, ambiguous and confusing, and omit critical facts," reads the request for dismissal.

Tourre's lawyers submitted the request just days after the SEC fined Goldman $550 million If the settlement is approved by a judge, then Goldman will return $250 million to affected investors and pay $300 million to the U.S. Treasury.

Goldman is also paying for Tourre's legal defense.

Tourre earned his "Fabulous Fab" nickname in April, when the SEC released an e-mail message that he allegedly wrote to a friend in 2007, boasting of his Wall Street prowess while suggesting knowledge of his firm's corrosive investments.

"More and more leverage in the system, The whole building is about to collapse anytime now ... Only potential survivor, the fabulous Fab[rice Tourre] ... standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those moustruosities[sic]!!!" wrote Tourre on Jan. 23, 2007, according to the SEC.

On Tuesday, Goldman announced that its second-quarter profit plunged 82%, partly because of the SEC settlement.

For the quarter, Goldman said it earned $613 million, or 78 cents a share, compared to $3.44 billion, or $4.93 a share a year earlier. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,279.74 13.75 0.08%
Nasdaq 4,579.79 -13.64 -0.30%
S&P 500 2,010.40 -0.96 -0.05%
Treasuries 2.59 -0.04 -1.60%
Data as of 12:37am ET
Company Price Change % Change
Yahoo! Inc 40.93 -1.16 -2.74%
Microsoft Corp 47.52 0.84 1.80%
Bank of America Corp... 16.95 -0.09 -0.53%
Oracle Corp 39.80 -1.75 -4.21%
Facebook Inc 77.91 0.91 1.18%
Data as of Sep 19

Sections

Law enforcement officials say Frank Tamayo was the middleman in a $5.6 million insider trading scheme that involved him eating pieces of paper to cover up the crime. More

Scotland's clear rejection of independence has eased fears that it could suffer the kind of decline seen in Quebec after it failed to break away from Canada. More

It's really good to be Larry Ellison. The Oracle founder is stepping down as CEO, so maybe he'll have more time to enjoy his glamorous life. More

As Occupy Wall Street goes on its debt-abolishing tear, thousands of people across the country are begging them to forgive their loans. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.