Ex-trader convicted of defrauding bailout program

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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.

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