A federal jury found former Jefferies Group trader Jesse Litvak guilty of defrauding clients on mortgage bond trades, a victory for the government as it probes whether banks cheated their customers in the years after the financial crisis.
Litvak, 39, was found guilty on Friday on all 15 counts he faced, following 1-1/2 days of deliberations by jurors in the federal court in New Haven, Conn. The trial began on Feb. 18.
Prosecutors accused Litvak of cheating clients out of more than $2 million by inflating bond prices, lying about how much Jefferies paid for them, and even inventing imaginary sellers.
They said he did this to boost Jefferies’ profit and his pay.
“We’re gratified the jury returned the verdict it did,” prosecutor Eric Glover told reporters outside the courtroom of Chief Judge Janet Hall, who oversaw the trial. “Justice was served.”
Litvak rubbed and shook his head as the verdict was read, turning to look at his parents and crying wife in the spectator section.
His lawyer Patrick Smith said an appeal is planned.
“Mr. Litvak is obviously very disappointed in the verdict,” Smith said. “The court made several serious errors that undermined Mr. Litvak’s ability to present his full defense.”
Reuters