A New York jury has found former Goldman Sachs trader Fabrice Tourre liable for fraud in a complex mortgage deal that cost investors $1bn (£661m).
Jurors concluded that the trader, who nicknamed himself “Fabulous Fab”, had misled investors in the run up to the global financial crisis in 2008.
Complex mortgage investments played a significant role in the crisis.
Mr Tourre was found liable in six of the seven fraud claims brought by US financial regulators.
He was accused by the Securities and Exchange Commission (SEC) of misleading investors about investments linked to subprime mortgages that he knew would fail.
Because the case is civil rather than criminal, he faces possible fines and a ban from the financial services industry.
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