Ex-Jefferies & Co. trader Jesse Litvak's former customers told a jury during his fraud trial in Connecticut that lies and misrepresentations are common and part of the give-and-take of bond trading.
Litvak, 39, is on trial in federal court in New Haven, Connecticut, accused of defrauding investors of $2 million by lying on trades of mortgage-backed securities. He's the only person charged with fraud in connection with an initiative to distribute more than $20 billion from the Troubled Asset Relief Program (TARP), which the U.S. government created during the 2008 credit crisis 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 a bond purchase was 57 cents on the dollar because anything more than that wouldn't provide a 10 percent yield.
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