NEW HAVEN, Conn. (AP) - Jury selection is starting Monday for the trial of a former managing director of an investment bank charged with defrauding investment funds the Department of Treasury established in 2009 as part of the federal government’s response to the financial crisis.
Jesse C. Litvak of New York City faces trial in New Haven on charges of fraud and making false statements to the federal government.
The indictment alleges Litvak, while a registered broker-dealer and managing director at Jefferies & Co., Inc. who worked on the company’s trading floor in Stamford, engaged in a scheme to defraud customers on residential mortgage-backed securities trades.
Authorities say Litvak, who was terminated form the company in 2011, defrauded investment funds of more than $2 million.
Litvak has pleaded not guilty and denied he defrauded anyone.
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