Ex-trader convicted of fraud faces sentencing

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NEW HAVEN, Conn. (AP) — Federal prosecutors say a former Wall Street investment banker convicted of securities fraud deserves a nine-year prison sentence. His attorney is calling for a sentence of no more than 14 months.

Jesse Litvak is scheduled to be sentenced Wednesday in federal court in New Haven. Prosecutors say he defrauded private investment funds and funds established by the U.S. Treasury with government bailout money.

Prosecutors say Litvak duped 35 victims into paying artificially increased prices or accepted artificially decreased prices for bonds they were buying or selling. They say the scheme netted $6.3 million of fraudulent profits for Jefferies & Co. Inc. where Litvak was a managing director.

Litvak’s attorney says the victims agreed they did not overpay for bonds.

Jefferies agreed to pay $25 million to settle investigations.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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