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.