The securities fraud attorneys at Meyer Wilson are currently investigating claims against former broker Jesse C. Litvak (CRD# 2921134).
Former Jefferies & Company, Inc. broker Jesse C. Litvak (CRD# 2921134) was found guilty of securities fraud last month by a federal jury in Connecticut for misconduct stemming from trading in residential mortgage-backed securities. The jury returned a guilty verdict against Litvak on 10 counts of securities fraud, four counts of making false statements to the government before the United States district court for the district of Connecticut and one count of Troubled Asset Relief Program (TARP) fraud. Litvak was fined $1.75 million in addition to restitution, and was sentenced to 24 months in prison followed by three years of supervised release.
Meyer Wilson previously reported on the misconduct of this broker back in 2013, when the United States Securities and Exchange Commission (SEC) filed a civil lawsuit against Litvack alleging that while working as a senior trader at Jeffries & Company, Inc., he repeatedly misled or lied to customers between 2009 and 2011 about the price his firm purchased mortgage-backed securities (MBS) before selling it to another customer. In some cases, Litvak reportedly informed clients that he was arranging a trade between two clients when in fact he was selling them an MBS from the firm’s inventory. He also allegedly lied to clients about how much compensation the firm would receive in compensation. The SEC’s complaint alleges misconduct on more than 25 trades. Among other allegations, the SEC stated that:
“On some occasions, Litvak also pretended to be actively negotiating with an outside party to buy a security that he would then re-sell to his customer. But none of these negotiations were taking place; instead, Litvak fabricated the existence of the seller and every detail about active negotiations with it. In fact, as Litvak knew, the firm had purchased these bonds days before and already held them in its inventory.”
If you lost money with former Jefferies & Company, Inc. broker Jesse Litvak, contact the securities fraud attorneys at Meyer Wilson today. We’ve recovered over $350 million in verdicts and settlements for our clients since we first opened our doors nearly 20 years ago, and continue to fight to secure the compensation our clients deserve. Fill out our online form to request a free case consultation, or call us at one of our office locations to speak with a member of our firm today.