Former Jefferies Managing Director Jesse Litvak was convicted in the only criminal case against an individual in connection with a U.S. program that used bailout funds to spur investment in mortgage-backed securities.
Bloomberg reports that Litvak, 39, of New York, was found guilty by a federal jury yesterday of all counts including securities fraud and making false statements as well as fraud connected to the U.S. government’s Troubled Asset Relief Program following a trial before U.S. District Judge Janet C. Hall in New Haven, Connecticut. He is scheduled to be sentenced May 30th.
Litvak is the only person to have been charged with fraud in relation to the Public-Private Investment Program, an initiative that used more than $20bn from TARP to spur investment in mortgage-backed securities that stayed on the books of financial institutions.
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