Prosecutors said that a former Jefferies & Co. managing director was arrested and accused of defrauding customers of more than $2 million on trades of residential mortgage-backed securities, Bloomberg News reported yesterday. Jesse C. Litvak was arrested yesterday at his home and charged with 16 counts including securities fraud, fraud connected with the Troubled Asset Relief Program and making false statements to the federal government, Connecticut U.S. Attorney David Fein said. Alleged victims include “numerous” investment funds, among them six established by the U.S. Treasury Department in 2009 as part of its response to the financial crisis, according to the statement. Litvak also defrauded private investment funds, according to the Fein's office.
