Former Stamford Jefferies trader faces criminal and SEC fraud charges

The U.S. Securities and Exchange Commission and the U.S. Attorney for the district of Connecticut announced Monday that Jess Litvak, a former broker and managing director of Jefferies and Co., has been indicted on criminal charges and is also facing civil charges over trades mortgage-backed securities trades he allegedly made between 2009 and 2011.

The two government agencies claim that Litvak misled investors about the price his firm paid for the MBS in order to get a higher resale price. In all, the government alleges that Litvak generated more than $2.7 million in additional revenue for Jefferies during the trading under investigation.

Rob Varnon