'Volunteering Information would not give me an edge, keeping information would give me an edge'

American courtroom

Ex-Jefferies trader Jesse Litvak’s former customers told a jury during his fraud trial in Connecticut that lies and misrepresentations are common and part of the give-and-take of bond trading.

Bloomberg reports that Litvak, 39, is on trial in federal court in New Haven, Connecticut, accused of defrauding investors of $2m by lying on trades of mortgage-backed securities. He’s the only person charged with fraud in connection with an initiative to distribute more than $20bn from the Troubled Asset Relief Program, which the U.S. government created during the 2008 credit crisis to help bail out banks.

Joel Wollman, a portfolio manager with QVT Financial LP, testified that he told Litvak that his firm’s limit for a bond purchase was 57 cents on the dollar because anything more than that wouldn’t provide a 10% yield.

Under cross-examination from John Hillebrecht, one of Litvak’s attorneys, Wollman admitted he told another broker that he’d get a 10% yield at 58 cents on the dollar, and that he wasn’t telling the whole truth to Litvak. The charges against Litvak include claiming that a third party was selling the bonds when Jefferies was the actual holder.

'Volunteering information would not give me an edge, keeping information would give me an edge', Wollman said.

To access the complete Bloomberg article hit the link below:

Ex-Jefferies Trader's Customers Say Lies Are Common Tactic

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image: © Clyde Robinson

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