The judge in the trial of former Jefferies Group LLC bond trader Jesse Litvak sent the case to the jury, which will weigh whether statements he made to clients were inconsequential or aggressive sales tactics that constituted fraud, the Wall Street Journal reported today. The federal government argues that Litvak committed securities fraud by misrepresenting to clients the prices of certain residential mortgage-backed securities he was selling and buying on their behalf, in a bid to boost his trading revenue. The verdict in Litvak's trial will be closely watched, as it could set a precedent for a government probe launched after Litvak was arrested last year. Investigators in that probe are looking at whether traders at other banks acted similarly.
