ML-Implode News - SEC Doesn't Want Fabrice Tourre Telling A Jury That The Guys He Ripped Off Deserved It

``On the other hand, the charge that Tourre deceived ACA about Paulson's role is meatier. He was the primary contact with ACA, and the SEC's claim is that he lied to them, directly, in person, by phone, and over email, about Paulson's interest in the Abacus capital structure. That might be fraud, and it might even be Fabrice Tourre's fraud.
The problem for the SEC is that ACA is so terrible. ACA, you'll recall, recently lost its own lawsuit against Goldman over Abacus. And as we discussed then, that's as it should be, because ACA was totally in on whatever scam Goldman was or was not running. ACA knew it was being hired to pretend to select the portfolio, and cheerfully let Goldman tell Abacus investors that it had picked the reference portfolio. But it hadn't. As ACA said itself, it was "the pro forma portfolio selection agent for ABACUS" and "agreed to and relied upon a portfolio largely selected by Paulson." But the offering memorandum made much of ACA's expertise, alignment of interests, and hard work in selecting a portfolio. All false! Probably not Fab Tourre's fault! Probably more ACA's fault than Fab's!''

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SEC Doesn't Want Fabrice Tourre Telling A Jury That The Guys He Ripped Off Deserved It