☰

Global

Ex-Jefferies trader sentenced to two years in prison in fraud case


    NEW HAVEN Conn. (Reuters) - A former Jefferies Group Inc managing director convicted of defrauding investors who traded mortgage bonds through a government program established in response to the 2008 financial crisis was sentenced on Wednesday to two years in prison.

    Jesse Litvak, 39, was convicted on March 7 on all 15 counts he faced, including 10 counts of securities fraud and one count of fraud under the federal bailout known as the Troubled Asset Relief Program.

    Litvak was the first person charged under a 2009 law banning major fraud against the United States through TARP.

    The married father of two was sentenced by Chief Judge Janet Hall of the U.S. District Court in New Haven, Connecticut, who presided over his jury trial. Hall also imposed a $1.75 million fine.

    (Writing by Noeleen Walder)