Nomura's Phone Taping Failed to Halt Bond Lies, U.S. Alleges
- Executive testifies tapes made to comply with regulations
- Testimony came in trial of 3 ex-traders charged with fraud
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Shortly after an ex-Jefferies LLC mortgage-bond trader was indicted for lying to customers in 2013, Nomura Holdings Inc. started recording the telephone calls of its employees.
The increased scrutiny included Nomura’s mortgage-bond traders, who were also given a handout telling them “do not lie” in the wake of the arrest of Jesse Litvak, the former Jefferies trader who was sentenced last month to two years in prison for fraud. Those steps didn’t rein in at least three former traders at Nomura, prosecutors said.