Former Jefferies & Company, Inc. Financial Advisor Jesse Litvak Guilty of Securities Fraud
Posted on Thursday, July 20th, 2017 at 9:05 am
Erez Law is currently investigating former Jefferies & Company, Inc. financial advisor Jesse Litvak (CRD# 2921134) regarding securities fraud violations. Litvak was registered with and acted as managing director of Jefferies & Company, Inc. in Stamford, Connecticut from 2008 to 2014, when he was terminated regarding, “Firm concluded that employee was not forthright with a customer regarding contra-side trade execution.” Previously, he was registered with RBS Greenwich Capital in Greenwich, Connecticut from 1997 to 2008.
In January 2017, the United States Securities and Exchange Commission (SEC) found Litvak guilty of 10 counts of securities fraud, one count of troubled asset relief program (tarp) fraud, and four counts of making false statements to the government before the United States district court for the District of Connecticut. Litvak was sentenced to a prison term of 24 months followed by three years of supervised release and ordered to pay a fine of $1,750,000 and restitution.
In January 2013, the SEC brought civil charges against Litvak alleging that he made misrepresentations and engaged in misleading conduct while he sold mortgage-backed securities (MBS) in the wake of the financial crisis. The SEC alleged that between 2009 and 2011, “Litvak lied to, or otherwise misled, those customers about the price at which the firm had purchased the MBS before selling it to another customer and the amount of his firm’s compensation for arranging the trades. On some occasions, Litvak also misled his customer into believing that he was arranging a MBS trade between customers, when Litvak really was selling the MBS out of the firm’s inventory. Litvak also misled customers about how much money they were paying in compensation to the firm.” According to the SEC complaint, Litvak engaged in misconduct in more than 25 trades. The SEC complaint charged Litvak with violating the antifraud provisions of the federal securities laws. The complaint is currently pending.
Litvak has been the subject of one customer complaint, according to his CRD report:
November 2011. “In early November 2011, the firm was contacted by a customer regarding certain non-agency,mortgage backed securities (“MBS”) that the customer had purchased from the firm. The customer claimed that the firm had earned more on certain trades than was contemplated by a purported oral arrangement the customer had with the firm’s trader and salesperson.” The case was settled for $2,236,453.16.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Jefferies & Company, Inc. may be liable for investment or other losses suffered by Litvak’s customers.
Erez Law represents investors in the United States for claims against former Jefferies & Company, Inc. financial advisor Jesse Litvak, who is alleged to participate in securities fraud violations. If you were a client of Jefferies & Company, Inc. or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.