Bond Trader Jesse Litvak’s Ordeal Ends as U.S. Drops Fraud Case

Federal prosecutors moved to dismiss criminal charges against former Jefferies Group LLC managing director Jesse Litvak, whose two convictions for fraud were both overturned by a federal appeals court.

Litvak’s arrest five years ago put traders on notice that they could face criminal prosecution for making misrepresentations to customers while negotiating trades, sending shock waves through Wall Street and leading to the resignations and suspensions of dozens of traders.

The traders argued that they were dealing with sophisticated investors who knew not to accept their every sales pitch as gospel.

It’s unclear whether prosecutors will seek to dismiss charges against others who were charged in the crackdown. Cases against other traders have been reversed on appeal or faltered before juries who were unable to agree on a verdict.

Litvak, Demos Deliver Blows to U.S. Bond-Fraud Probes: Scorecard

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