Home Banking & Finance Ex-Jeffries trader sentenced to 24 months for RMBS fraud

Ex-Jeffries trader sentenced to 24 months for RMBS fraud

Jesse C. Litvak's sentence also includes three years of supervised release.

Jesse C. Litvak, a former senior trader and managing director at Jeffries & Co., was sentenced to 24 months of imprisonment, followed by three years of supervised release, for engaging in fraudulent residential mortgage-backed securities (RMBS) trades. In January, he was found guilty on one count of securities fraud and not guilty on nine counts of securities fraud in a retrial held in U.S. District Court in New Haven.
Litvak was originally convicted in March 2014 on 10 counts of fraud related to trading in residential mortgage-backed securities, one count of fraud connected to the federal Troubled Asset Relief Program (TARP) and three counts of making false statements to the government. In December 2015, the U.S. Court of Appeals for the Second Circuit reversed the convictions on TARP fraud and making false statement charges and remanded the securities fraud charges for a new trial.
“This sentence sends an unequivocal message that fraud in the residential mortgage backed securities trading market will be met with serious punishment,” said Deirdre M. Daly, U.S. attorney for the District of Connecticut. “Jesse Litvak took advantage of his victims through his repeated and brazen lies, and as the court correctly found, Litvak’s lies led to more than $6 million in unearned profits for his employer. Simply put, Litvak lied to investors to cheat them and make more money for himself. This has been a demanding and lengthy prosecution.”


Print Friendly, PDF & Email
Previous articleOpponents see Danbury OTB plan as city’s odds-on favorite
Next articleEmcor Group reports growth in first quarter
Phil Hall's writing for Westfair Communications has earned multiple awards from the Connecticut Press Club and the Connecticut Society of Professional Journalists. He is a former United Nations-based reporter for Fairchild Broadcast News and the author of 10 books (including the 2020 release "Moby Dick: The Radio Play" and the upcoming "Jesus Christ Movie Star," both published by BearManor Media). He is also the host of the SoundCloud podcast "The Online Movie Show," co-host of the WAPJ-FM talk show "Nutmeg Chatter" and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill's Congress Blog, Profit Confidential, The MReport and StockNews.com. Outside of journalism, he is also a horror movie actor - usually playing the creepy villain who gets badly killed at the end of each film.


Please enter your comment!
Please enter your name here