United States: Ex-Jefferies Bond Trader Convicted on One of 10 Fraud Counts

Author(s): Erik Larson, Chris Dolmetsch | Date: January 27, 2017 | Language: English
Source: https://www.bloomberg.com/ | URL: https://goo.gl/SS4aoB | Type: Text

Former Jefferies & Co. managing director Jesse Litvak was convicted for a second time of defrauding customers on trades of mortgage-backed securities — but only on one of 10 criminal counts.
On the sixth day of deliberations Friday, a federal jury in New Haven, Connecticut, found Litvak guilty of one count of securities fraud following a trial that began Jan. 4. He was acquitted of nine counts. He’s scheduled to be sentenced April 21 and faces a maximum term of 20 years in prison, although he’s likely to get a much less severe sentence.
The notable feature in the count that he was convicted of was that Litvak altered an electronic chat between himself and a seller to make it seem he paid more for the bond than he actually did. He then sent a copy of the altered chat to a trader at Invesco Securities Master Fund LP. Jeaneen Terrio, an Invesco spokeswoman, didn’t immediately respond to a voicemail seeking comment.

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