Trial of Goldman Sachs trader opens in New York

NYC jury hears opening statements in mortgage securities case against former Goldman trader

Associated Press
Trial of ex-Goldman Sachs trader opens in New York
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Former Goldman Sachs Group Inc. executive Fabrice Tourre, right, enters Manhattan federal court on the first day of his trial, Monday, July 15, 2013, in New York. Tourre is accused of misleading investors about the true prospects of their bet on a package of mortgage-based securities. (AP Photo/Louis Lanzano)

NEW YORK (AP) -- A government lawyer says a former Goldman Sachs trader who referred to himself as "Fabulous Fab" deceived investors about mortgage-based securities in a classic case of "Wall Street greed."

Securities and Exchange Commission lawyer Matthew Martins gave opening arguments Monday at the Manhattan trial of Fabrice Tourre (fah-BREES' toor) .

Tourre's lawyers say he's done nothing wrong.

The SEC says Tourre failed to divulge that a billionaire-led company helped pick assets that would decide the value of the investment. At the same time, the company was betting against them.

Goldman Sachs settled charges brought against it, paying $550 million.

Tourre grew up in France and moved to the U.S. in 2000 to study at Stanford University in California.

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