Legal News

Former Jefferies Group Trader Found Guilty of Misrepresenting Bond Prices
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

A jury in the U.S. District Court in New Haven, Conn., found former Jefferies Group LLC trader Jesse Litvak guilty of misrepresenting bond prices to his clients and thus violating federal securities laws. Federal prosecutors had accused Litvak of providing inflated prices of certain residential mortgage-backed bonds and then pocketing the difference.

Litvak’s case is significant in many ways. It is the first case where a person was charged with fraud related to the Public-Private Investment Program initiative under the federal TARP. The program had been started by the Treasury Department to authorize private money managers buy bonds using taxpayer’s money to alleviate the subprime mortgage crisis. Secondly, the case will also increase diligence in negotiating bonds.


The jury panel of five woman and seven men took two days of deliberation to find Litvak guilty on 15 criminal counts, including 10 counts on securities fraud. His sentence would be passed in a separate proceeding by a federal judge.

Prosecutors had alleged that Litvak, who worked at the Stamford, Conn., office of Jefferies between April 2008 and December 2011, had swindled his customers out of $2 million by providing them incorrect pricing information.

Litvak’s defense argued that statements made by Litvak to his clients had no impact on their decision to purchase the bonds. His lawyer, Patrick Smith, argued that “Both sides do it to each other because the tactics are expected … At the end of the negotiations, everyone gets where they need to be.” He also argued that in the concerned cases private money managers were not acting on behalf of the government, but in their own capacities.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Jefferies LLC has not been charged of any wrongdoing and it had entered into a preliminary agreement early this year to pay $25 million and resolve U.S. investigations concerning Litvak.


Interesting Legal Sites You May Like




Search Now

Mid-level Litigation Attorney with motions experience


Seattle office of our client seeks mid-level litigation attorney with 3-5 years of experience, inclu...

Apply Now

Environmental /Land Use Attorney with 2-3 years of experience

USA-CA-San Francisco

San Francisco office of our client seeks environmental /land use attorney with 2-3 years of experien...

Apply Now

Litigation Attorney with 2-5 years of insurance defense experience


Jacksonville office of our client seeks litigation attorney with 2-5 years of previous insurance def...

Apply Now

Land Use, Zoning Attorney with 2-6 years of real estate experience


Fishkill office of our client seeks land use, zoning and development attorney with 2-6 years of comm...

Apply Now


Corporate / Commercial Attorney | Lebanon, NH


Downs Rachlin Martin PLLC seeks an experienced corporate / commercial attorney to join its Lebanon o...

Apply now

Business Law Junior Associate | Burlington, VT


Downs Rachlin Martin seeks associate attorney with 1-3 years of experience to join its Commercial an...

Apply now

Business Law Associate | Burlington


Downs Rachlin Martin is seeking an attorney with 4 to 8 years of experience to join its very busy pr...

Apply now

Litigation Associate

USA-NY-New York City

Midtown Manhattan litigation boutique with diverse civil litigation practice seeking associate with ...

Apply now

Most Popular


To Top