Bond-Trader Crackdown by U.S. Flops With Litvak, Demos Walking Free
- Cases alleging fraud unravel spectacularly for prosecutors
- Five-year campaign against lying to customers may be at end
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The cases struck fear into the hearts of Wall Street bond traders, and with reason. They hinged on a simple argument by prosecutors: Traders’ lies are illegal.
Yet in a matter of hours on Thursday, two of the higher-profile cases -- the bond-market equivalents of trials of the decade -- unraveled for federal prosecutors in spectacular fashion.