An ex-Jefferies trader convicted last year of lying to buyers and sellers of mortgage-backed bonds may have done nothing worse in one judge’s view than what a homeowner does when selling a house.
Bloomberg News reports that there’s a 'certain amount of license and puffery' that goes on in the bond market, especially with 'big boys' 'who are capable of very sophisticated analysis', U.S. Circuit Judge Barrington D. Parker said Wednesday during the appeal of Jesse Litvak’s conviction. 'This kind of thing goes on all the time'.
Litvak, 40, was found guilty by a federal jury in New Haven, Connecticut, in March 2014, becoming the first person convicted of fraud tied to the Troubled Asset Relief Program set up by the U.S. amid the 2008 financial crisis. On appeal, Litvak says the case would make crimes out of statements in everyday negotiations such as car sales and that his lies weren’t material to the bond transactions.
Parker, one of three judges hearing the case in the U.S. Court of Appeals in New York, may agree.
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