Ex-trader convicted of defrauding bailout program

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

NEW HAVEN, Conn. (AP) — A former investment banker has been convicted in Connecticut of defrauding investment funds established as part of the government's response to the financial crisis.

The U.S. attorney's office says a jury in New Haven convicted Jesse Litvak on Friday of securities fraud, Troubled Asset Relief Program fraud and making false statements to the federal government. Prosecutors say he defrauded bailout funds and private investment funds of more than $2 million.

Litvak's attorney denied the allegations, saying his client sold bonds at great prices to sophisticated buyers. He says Litvak engaged in typical sales tactics, followed company rules and that the government couldn't prove any losses.

Litvak, of New York City, was a registered broker-dealer and managing director at Jefferies & Co. Inc. who worked on the company's trading floor in Stamford.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press


    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast