STAMFORD, Conn. — A New York City man working as a broker dealer in Stamford has been charged with securities fraud, according to a news release from U.S. Attorney David B. Fein’s office said.
While working in the Stamford office of Jefferies & Co., Jesse Litvak, 38, is suspected of scheming to defraud by misrepresenting transactions either with the seller’s asking price to the buyer, or the buyer’s price to the seller, the release said. The difference in the price paid would be kept for Jefferies, the release said.
He is also suspected of misrepresenting bonds to buyers in Jefferies inventory by offering them for sale by third parties he made up, the release said. If he did this he was then able to charge the buyer an extra commission, the release said.
Litvak is suspected of doing this with residential mortgage-based securities, and allegedly defrauded six Securities Public-Private Investment Program funds and multiple private funds for $2 million, the release said.
He also was charged with 11 counts of securities fraud, one count of Troubled Asset Relief Program fraud, and four counts of making false statements to the federal government, the release said.
Each count of securities fraud has a maximum sentence of 20 years imprisonment, the Troubled Asset Relief Program charge has a maximum term of 10 years imprisonment, and five years imprisonment for each false statement charge, the release said.
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