New York Broker Accused of Securities Fraud of Over $2 Million

Jesse C. Litvak, a bond trader for Jefferies & Company, Inc., New York, has been accused of deceiving clients in order to maximize his profits. The Court documents filed on Jan. 25, 2013 listed the charges against Jesse Litvak as securities fraud by deceiving buyers, major fraud against the United States and false statements to the government.

Allegedly, Litvak’s clients paid in excess of more than $2 million, most of which ended up in Litvak's own pocket. The SEC complaint stated, “On numerous occasions from 2009 to 2011, Litvak lied to, or otherwise misled, customers about the price at which his firm had bought the [fusion_builder_container hundred_percent="yes" overflow="visible"][fusion_builder_row][fusion_builder_column type="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" spacing="yes" background_image="" background_repeat="no-repeat" padding="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="no" center_content="no" min_height="none"][mortgage-backed securities] and the amount of his firm’s compensation for arranging the trades. Litvak’s misconduct misled customers about the market price for the MBS, and thus about the transaction they were agreeing to.”

Litvak has fought the charges claiming that his clients were far too financially savvy to be fooled by simple fraud, and that his sales tactics were sincere and his valuations were legitimate. According to may experts on the subject, this is a very complicated issue.

This trial is being covered heavily in the press because many feel these types of securities cases were at the heart of the financial crisis. Many people believe the government is trying to use the case to show their commitment to punishing those who may have caused the financial crisis.

If successful in prosecuting this securities fraud case, this case could have major implications in white collar crime and help establish a common law which will define the punishment for such behaviors.

Soreide Law Group represents clients nationwide before FINRA. If you have sustained investment losses due to your stock broker/financial advisor’s recommendations, call for a free consultation with an attorney on how to potentially recover those losses: 888-760-6552. [/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]