Conn. trial starting for former trader charged with defrauding federal bailout program

The Associated Press 0

NEW HAVEN, Conn. – A former investment banker charged with defrauding investment funds established as part of the government’s response to the financial crisis is headed to trial in Connecticut.

Jesse C. Litvak of New York City faces trial in New Haven on charges of fraud and making false statements to the federal government. Opening statements are planned for Tuesday.

Litvak was a registered broker-dealer and managing director at Jefferies & Co. Inc. The indictment alleges he engaged in a scheme to defraud customers on residential mortgage-backed securities trades.

He worked on the company’s trading floor in Stamford.

Authorities say Litvak, fired by the company in 2011, defrauded investment funds of more than $2 million.

Litvak has pleaded not guilty and denied he defrauded anyone.

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