The case provides the SEC with an opportunity to produce a successful case after losing a series of cases in the aftermath of the 2008 financial crash.

The regulator had accused Tourre of misleading investors about sub-prime mortgage securities that he knew would collapse – as did indeed occur. The conduct, reports said, enable a Goldman Sachs client, Paulson & Co, to secretly bet against the investment.

"We are gratified by the jury's verdict," said Andrew Ceresney, co-director of the SEC's enforcement division, was quoted as saying. "We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street."

The SEC alleged that Tourre, used a product known as Abacus 2007-AC1 to mislead investors. The regulator alleged that he failed to declare that Paulson had helped choose, and intended to bet against, mortgage securities underlying the 2007 deal.

Torre, a mid-level executive at Goldman Sachs, was the only individual ever charged in relation to Abacus. Goldman Sachs was hit with a $550 million fine to settle SEC charges in 2010, without admitting or denying guilt.