Ex-Jefferies & Co. trader Jesse Litvak's former customerstold a jury during his fraud trial in Connecticut that lies andmisrepresentations are common and part of the give-and-take of bondtrading.

Litvak, 39, is on trial in federal court in New Haven,Connecticut, accused of defrauding investors of $2 million by lyingon trades of mortgage-backed securities. He's the only personcharged with fraud in connection with an initiative to distributemore than $20 billion from the Troubled Asset Relief Program(TARP), which the U.S. government created during the 2008 creditcrisis to help bail out banks.

Joel Wollman, a portfolio manager with QVT Financial LP,testified yesterday that he told Litvak that his firm's limit for abond purchase was 57 cents on the dollar because anything more thanthat wouldn't provide a 10 percent yield.