On April 26, 2017, Jesse Litvak, a former trader of residential mortgage-backed securities (RMBS), was sentenced to two years in prison followed by three years of supervised release for engaging in fraudulent RMBS trades.  Litvak was also ordered to pay a $2 million fine.  Litvak’s sentenced follows a guilty verdict on one count of securities fraud after a jury trial that concluded in January 2017.  The jury also acquitted Litvak on nine counts.  Litvak’s conviction and sentencing follows a 2014 conviction for which he was also sentenced two years imprisonment.  In the 2014 trial, Litvak was tried and convicted on 10 counts of securities fraud, one count of Troubled Asset Relief Program fraud, and three counts of making false statements to the government based on misrepresentations about the price paid for RMBS bonds by Jeffries & Co., Inc., Litvak’s employer, made to buyers and sellers of those bonds.  After that trial, Litvak also received a sentence of two years imprisonment, which was then reversed by the Second Circuit.  United States v. Litvak, No. 13-cr-00019 (D. Conn.) DOJ press release

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