US seeks USD 1.1 mn from ex-Goldman trader Tourre

US regulators are seeking more than USD 1.1 million from ex-Goldman Sachs trader Fabrice Tourre after he was found to have defrauded investors on mortgage bonds.
The Securities and Exchange Commission asked in a filing late yesterday for USD 910,000 in penalties from Tourre, who was found liable of fraud by a federal jury in August over the sale of mortgage-linked securities ahead of the financial crisis.
The SEC is also seeking the disgorgement of USD 175,463 in ill-gotten gains and USD 62,858.03 in interest.
A New York jury found Tourre liable on six of seven counts of fraud for misleading investors over the risk of the mortgage-linked securities Goldman sold to them in 2007. The securities cratered after the housing bust, leaving the investors with large losses.

Tourre, a French national, gained the nickname "Fabulous Fab" after he called himself that in an email that also made clear he knew the bonds were highly risky.
Goldman Sachs paid USD 550 million in 2010 to settle with the SEC on a related investigation.
US District Judge Katherine Forrest will determine the penalty.