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Preview: 'Fabulous Fab' trial is a test for U.S. SEC on crisis prosecutions

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The trial of former Goldman Sachs bond trader Fabrice "Fabulous Fab" Tourre next week gives the U.S. Securities and Exchange Commission an opportunity to prove that it can win big cases tied to the financial crisis. The SEC claimed an 85 percent success rate in all trials last year, but its critics have said that, when it comes to the financial crisis, its win rate has been dismal. Tourre's civil fraud trial, which starts in federal court in New York on Monday, could help silence those critics, but experts said the regulator is facing no easy task. The SEC has said that Tourre, while a vice president at Goldman Sachs Group Inc GS.N in 2007, misled investors in a structured investment vehicle called Abacus 2007-AC1 by not disclosing the role a hedge fund that planned to bet against the transaction played in setting it up. Investors lost more than $1 billion when the investment vehicle failed, according to the SEC. Goldman Sachs agreed to pay $550 million in July 2010 to settle

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