SEC Charges Former Jefferies Director with MBS-Related Fraud

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Posted To: MND NewsWire

The managing director of the mortgage-backed securities (MBS) desk at Jefferies and Co. has been charged with fraud for allegedly lying about the origin and history of MBS he was selling to investors following the crash of the housing industry. The Securities and Exchange Commission (SEC) has charged Jesse Litvak in federal court in Connecticut for activities that generated $2.7 million in additional revenue for Jefferies between 2009 and 2011. The manipulation of MBS sales also improved Litvak's standing in the company as his bonuses were partly determined by the revenue he generated. According to court papers, Litvak sometimes bought a MBS from one customer and sold it to another customer, lying to the second customer about the price paid to the first in order to price the security higher...(read more)

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Source: http://www.mortgagenewsdaily.com/01282013_mortgage_fraud.asp

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