SEC Ends Suit Against Former Jefferies Trader Cleared of Fraud
Jesse Litvak in 2014.
Photographer: Douglas Healey/Bloomberg
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The U.S. Securities and Exchange Commission agreed to drop a lawsuit against former Jefferies Group LLC trader Jesse Litvak, who was cleared in August of criminal charges that he lied to customers about bond prices in trades of mortgage-backed securities following a five-year legal odyssey.
Litvak, the first person charged in a crackdown on questionable tactics used by bond traders, was found guilty of securities fraud last year and served seven months of a two-year prison sentence before an appeals court threw out his conviction for a second time in May and ordered him released. A federal judge dismissed the remaining charge in August.