Jefferies ordered to expenses and fees of former MD

Jefferies was ordered to pay expenses including legal fees of Jesse C. Litvak, a former Managing Director accused of defrauding customers on trades of mortgage-backed securities.

Bloomberg Businessweek reports that Litvak, who has pleaded not guilty, was indicted in January on charges of securities fraud, fraud connected to the Troubled Asset Relief Program and making false statements to the federal government.

Alleged victims include investment funds, among them six established by the U.S. Treasury Department in 2009 in response to the financial crisis.

Litvak filed a petition in New York State Supreme Court in Manhattan last week seeking to confirm an award made by Financial Industry Regulatory Authority arbitrators last month. The three-member Finra panel ordered Jefferies to pay all expenses, including attorneys’ fees, incurred by Litvak 'in defending all third-party proceedings related to his activities' while employed there, according to court filings.

U.S. District Judge Janet C. Hall in New Haven, Connecticut, last month ordered the government to turn over any communications it had with Jefferies relating to legal fees the firm paid in connection with the case.

To access the complete Bloomberg Businessweek article hit the link below

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image: © Clyde Robinson

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