Ex-Jefferies Trader Jesse Litvak Appeals Fraud Conviction

Ex-Jefferies & Co. Managing Director Jesse Litvak, the only person convicted of fraud in connection with a U.S. program that used bailout funds to spur investment in mortgage-backed securities, filed court papers starting his appeal.

Litvak, 39, was convicted in March of securities fraud and making false statements, as well as fraud connected to the U.S. government’s Troubled Asset Relief Program, in a trial in federal court in Connecticut. He was sentenced last month to two years in prison and ordered to pay a $1.75 million fine for lying to customers about mortgage-backed securities.

Defense lawyers yesterday filed a notice of appeal. Attorney Patrick Smith, with DLA Piper LLP, didn’t immediately respond to an e-mail for comment on the appeal. Tom Carson, a spokesman for Connecticut U.S. Attorney Deirdre M. Daly, said in an e-mail his office will respond in court.

Prosecutors had asked U.S. District Judge Janet C. Hall to impose a nine-year sentence and fine of $5 million. Litvak’s attorneys sought a prison term of no more than 14 months.

Litvak, who said he will appeal his conviction and sentence, must surrender to prison by Nov. 5.

The case is U.S. v. Litvak, 13-cr-00019, U.S. District Court, District of Connecticut (New Haven).

Before it's here, it's on the Bloomberg Terminal.