Published February 28, 2014
The former Goldman Sachs trader who cheated investors has found a new gig teaching future traders at one of the country's most prestigious economics programs.
The Wall Street Journal reported that Fabrice Tourre, who called himself “fabulous Fab,” will teach “Elements of Economics Analysis 3” at the University of Chicago during the spring semester. Tourre was found liable for securities fraud for misleading investors over mortgage investments
The Securities and Exchange Commission had accused Tourre of scheming to sell investors subprime mortgage securities that he knew would fail. Goldman placed Mr. Tourre on unpaid leave in late 2011, and he returned to school. He left Goldman in December 2012, The Wall Street Journal reported.
Authorities said the maneuver allowed a hedge fund and its billionaire president, John A. Paulson, to make $1 billion by betting against the investment. He insisted at trial that he never misled anyone.
Goldman Sachs settled its end of the case, agreeing to pay $550 million.
The Associated Press contributed to this report