A federal jury is poised to take up fate of three former Nomura traders following a month-long trial on charges they lied to their customers about the prices of mortgage bonds and trained their subordinates to do the same thing.
Bloomberg News reports that deliberations in Hartford, Connecticut are likely to start Tuesday after jurors heard closing arguments Monday from lawyers for Ross Shapiro, Michael Gramins and Tyler Peters. The trio are accused of fraud by misrepresenting the prices at which securities were bought and sold and lying about where bonds had been acquired in order to boost commissions.
They face prison terms if convicted. Their trial follows the conviction of Jesse Litvak, a former Jefferies LLC trader who was found guilty of one of 10 counts of securities fraud in January and sentenced to spend two years in prison and pay a $2 million fine.
Marc Mukasey, an attorney for Gramins, urged jurors to find his client not guilty of charges of conspiracy, securities fraud and wire fraud. Mukasey argued that the case only came about because the government “stepped into a market that it did not understand, with witnesses who did not remember, to prosecute people who didn’t think they were doing anything wrong and weren’t guilty of anything.”
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