Customers of former Jefferies managing director Jesse Litvak told a jury during his fraud trial last week that they still got good deals on the bonds they bought through him even with his alleged misrepresentations.
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.
Alan Vlajinac, a bonds trader at Wellington Management Co., testified that he was disappointed to learn that he had bid $76 for a bond that Jefferies had bought for $74, saying he had trusted Litvak.
Vlajinac said under cross-examination by Litvak’s attorney, Patrick Smith of DLA Piper LLP, that he achieved 'best execution' on the deal - meaning he paid the best available price for the bond.
'Would I do it again at $76, just based on price ? Probably', Vlajinac said.
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image: © Clyde Robinson