Three former Nomura traders are set to go to trial in November on charges that they defrauded investors by inflating the prices of mortgage-backed securities in the wake of the U.S. financial crisis, even as prosecutors wait to find out if a similar case will be thrown out on appeal.
The three men, accused of illegally profiting from selling bonds at higher prices than they bought them, were released on $1m bail each and ordered to surrender their passports pending a trial scheduled to begin November 10. They face as long as 20 years in prison if convicted.
Authorities are awaiting the decision of a federal appeals court in Manhattan on whether to reverse the conviction of former Jefferies trader Jesse Litvak. He was found guilty last year of similar conduct in the trading of mortgage-backed securities and sentenced to two years in prison.
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