NEW HAVEN, Conn. (AP) — Federal prosecutors say a former Wall Street trader convicted of securities fraud deserves a nine-year prison sentence for what they called a multi-year multi-million dollar scheme.
Jesse Litvak is scheduled to be sentenced Wednesday 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 accepting 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 and is seeking a sentence of up to 14 months.
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 This material may not be published, broadcast, rewritten or redistributed.