Bailey McCann, Opalesque New York:
The insider trading docket is pretty full this week. Cases against Fabrice Tourre, the former Goldman Sachs trader accused of defrauding investors in a mortgage deal six years ago and Steven Cohen, the head of SAC Capital both moved forward today. The SEC also announced insider trading charges against Stephen B. Gray, the CEO of a Houston-based investor relations firm, which stands accused of trading on inside information from a number of clients of the firm.
In a surprise move late yesterday, the defense in Fabrice Tourre's case rested without calling any witnesses. The case will now move into closing arguments today, in New York City. The SEC called 11 witnesses and had in all, two weeks of testimony leading up to this moment and will now be decided by a jury. Tourre himself testified on Friday, and his defense seemed relatively upbeat at that time according to a Wall Street Journal report.
The crux of the case centers on whether a mortgage trade involving Mr. Tourre, Paulson & Company and ACA Financial contained inaccurate information that Mr. Tourre knew about and failed to correct. The burden of proof falls with the SEC to show that Mr. Tourre willfully gave fraudulent information to investors. The DealBook ......................
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