Subprime mortgage derivatives played an important role in the Financial Crisis of 2008. In early 2007, Goldman Sachs acted as the underwriter of privately-placed notes issued in a synthetic Collateralized Debt Obligation (CDO) transaction known as ABACUS 2007-AC1. In 2010 the US Securities and Exchange Commission brought a securities fraud action against Goldman Sachs and its employee, Fabrice Tourre, for making materially misleading statements and omissions in connection with the ABACUS transaction. The case describes the structure of the transaction and the nature of charges against Goldman Sachs.