On January 27, 2017, a Connecticut jury returned a guilty verdict on one count of securities fraud, and a verdict of not guilty on nine counts of securities fraud in the retrial of Jesse Litvak.  In 2014, Litvak was tried and convicted on 10 counts of securities fraud, one count of Troubled Asset Relief Program (“TARP”) fraud, and three counts of making false statements to the government based on misrepresentations about the price paid for RMBS bonds by Jefferies & Co., Inc., Litvak’s employer, made to buyers and sellers of those bonds in in the Treasury Department’s Legacy Securities Public-Private Investment Program (“PPIP”).  However, in 2015, the Second Circuit reversed Litvak’s TARP fraud and false statements convictions and vacated and remanded his securities fraud convictions on the grounds that the trial court had erroneously excluded relevant expert testimony about whether participants in the RMBS bond market would have viewed Litvak’s statements as material.  Litvak’s sentencing is scheduled for April 21, 2017.  United States v. Litvak, No. 13-CR-00019 (D. Conn.). DOJ Press Release

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