WTF?! The SEC Thinks Fabulous Fab Case is Important?: However, all my other 10b-5 contentions remain valid — this is a simple fraud case:
At the heart of the agency’s case is the contention that in 2007 Mr. Tourre and Goldman sold investors a mortgage security, known as Abacus, without disclosing a crucial fact: a hedge fund run by the billionaire John A. Paulson helped construct Abacus and then bet against it. The S.E.C. cited Goldman for “misstating and omitting key facts” about Mr. Paulson’s involvement. When the mortgage market soured, a German bank and a handful of other sophisticated investors lost more than $1 billion on the deal.”
That is what the trial will turn on, it is what the jury will determine, and it is what will determine the Fabulous Fab’s future career.