The trial of Fabrice Tourre: Collective guilt WERE Fabrice Tourre merely an ordinary defendant in a case brought by the Securities and Exchange Commission (SEC), it would be time to forget his name. But on August 1st a jury in a Manhattan federal court found him liable on six counts of securities fraud - including one of "aiding and abetting" his former employer, Goldman Sachs. This means that a jury has found that the world's most successful investment bank has done something wrong - and that the case may be far from over. The trial's judge, Katherine Forrest, must now decide what penalties to impose on Mr Tourre for his role in misleading investors about a complex security, called Abacus, which caused three financial firms to lose $1 billion. His attorneys will presumably argue that he has already suffered substantial loss, including his job (though Goldman has paid his legal fees) and public humiliation. The SEC could seek a ban from the industry and fines. Given Goldman's deep pockets, Mr Tourre had reason to take his chance in court. Conversely, there is little doubt that Goldman, which had already paid $550m to settle related claims with the SEC without admitting or denying guilt, would have preferred him to settle. This time around, the firm may hope that Mr Tourre continues his defence. True, an end to proceedings would stop a public-relations nightmare: the trial painted a picture of a firm that was creative and responsive - but not fully forthcoming and certainly not to be trusted. Yet allowing the aiding-and-abetting claim to stand may have legal ramifications. Goldman already faces a class-action suit by some of its shareholders, filed in the Southern District of New York, seeking billions in damages related to Abacus and three other transactions. The suit alleges that Goldman failed to disclose that it was acting against its own clients" interests when creating these financial products. "The Tourre verdict, in particular the finding that Tourre aided and abetted Goldman, sends a message to hold those responsible for creating these financial products that were destined to fail," said Spencer Burkholz of Robbins Geller Rudman and Dowd, the counsel for the plaintiffs. Discovery is in process, a trial could come next summer. Much to his regret, Mr Tourre's fame will continue.