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Sunday, October 23, 2016

New York (AFP) – U.S. regulators are seeking more than $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 Monday for $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 $175,463 in ill-gotten gains and $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 $550 million in 2010 to settle with the SEC on a related investigation.

U.S. District Judge Katherine Forrest will determine the penalty.

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