CREEP OF THE WEEK: CONVICTED WALL STREET TRADER SUES CUSTOMER WHO TURNED HIM IN!

CREEP OF THE WEEK: CONVICTED WALL STREET TRADER SUES CUSTOMER WHO TURNED HIM IN!

Published: December 19, 2014
http://www.dvorak.org/blog/2014/12/19/convicted-wall-street-trader-sues-customer-who-turned-him-in/

Creep of the week

A former Jefferies & Co. managing director convicted of fraud for lying to customers about the price of mortgage-backed securities sued the AllianceBernstein Holding LP (AB) executive who reported him.

Jesse C. Litvak sued Michael Canter, head of the securitized assets group at New York-based AllianceBernstein, in New York State Supreme Court in Manhattan yesterday, accusing him of using “wrongful, unfair or improper means” to interfere with his employment, directly resulting in his termination.

Litvak was accused of defrauding investors of $2 million by misrepresenting how much sellers were asking for the securities, or what customers would pay, and keeping the difference for Jefferies…

Canter testified for the prosecution during the case, saying the spreadsheet showed that Litvak had misled him about how much Jefferies had paid for bonds, including one instance when Canter agreed to raise a bid, yet the firm still paid the original price.

Litvak was found guilty in March of securities fraud and making false statements, as well as fraud connected to the Troubled Asset Relief Program. Along with his prison sentence, he was ordered to pay a $1.75 million fine.

Throw away the key!

The judge should call him back for re-sentencing – and double the time, triple the fine!

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