Connecticut man arrested for securities fraud

NEW HAVEN, Conn. (WTNH)  –  A former Bond Trader with Cantor, Fitzgerald & Company, who lives in Westport, is facing federal securities fraud charges.

The U.S. Attorney’s Office for Connecticut has announced that 35 year old David Demos has been indicted on six counts of securities fraud.  According to the indictment, Demos defrauded customers by fraudulently inflating the purchase price that Cantor Fitzgerald could buy a residential mortgage-backed securities bond to induce their victim-customers to pay a higher price for the bond.  He also fraudulently deflated the price that Cantor Fitzgerald could sell a RMBS Bond to induce their victim-customers to sell bonds at cheaper prices.  As a result Demos and the firm profited illegally and customers lost millions of dollars.

Demos, if convicted, faces a maximum prison term of 20 years on each of the six counts.

WTNH NEWS8 provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Also, you can now block any inappropriate user by simple selecting the drop down menu on the right of any comment and selection "Block User" from there.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s