Former Jefferies Managing Director Charged with Defrauding Customers $2Million

Jesse Litvak, a former Jefferies & Co. managing director, has been charged with defrauding customers out of $2 million.

A jury has been selected in federal court in New Haven, Connecticut. Litvak is charged with fraud in connection with a United States program using bailout funds to help spur investment in mortgage-backed securities. This is one of the first cases tied to this program. In January, 2013, Litvak was indicted on charges of fraud connected to Troubled Asset Relief Program (TARP), securities fraud, and making false statements. Litvak is to date the only person charged with fraud in connection with the Public-Private Investment Program, which used more than $20 billion in TARP funds to spur investments in mortgage-backed securities issued before 2009.

Litvak pleaded not guilty and is free on $1 million bond. He was also sued by the Securities and Exchange Commission (SEC) for defrauding investors in 25 trades over two years.

Litvak was employed by Jefferies, Stamford, Connecticut, from April 2008 to December 2011 after he was terminated stemming from a customer complaint of over-charging. Before joining Jefferies, Litvak worked more than ten years at RBS Greenwich Capital in Greenwich, according to Financial Industry Regulatory Authority (FINRA) records.

Jefferies has agreed to pay $25 million to settle alleged abuses in the trading of mortgage-backed securities. Leucadia National Corp. acquired New York-based Jefferies last year.

If you were a client of former Jefferies & Co broker, Jesse Litvak, and have suffered significant losses, call for a free consultation on how to potentially recover those losses. To speak with an experienced attorney in this matter, call: 888-760-6552. Soreide Law Group represents investors nationwide before FINRA.