Trader’s lawyer defends him with ‘used car salesmen’ comparison
NEW HAVEN — The deceptive practices used by Wall Street bond traders are no worse than the ones used by “your local used car salesmen,” the lawyer for former Jefferies Group managing director Jesse Litvak told a federal court jury here on Thursday.
Litvik stands accused of lying to customers for two years about how much he paid for bonds.
The lies, federal prosecutors claim, led the customers to overpay for the bonds — and allowed Jefferies from 2009-2011 to boost its profits by $2.25 million.
Litwak was convicted of the charges in 2014 and sentenced to two years in prison — making him one of the few Wall Streeters headed for incarceration because of his misdeeds.
see also Ex-Jefferies trader's fraud conviction tossed Citing errors made by the trial judge, a federal appeals...
But that conviction was overruled in 2015 — setting the stage for Thursday’s re-trial.
The appeals court ruled that the trial judge erred by barring expert witnesses to testify on Litvak’s behalf.
In his opening statement, Litvak’s lawyer told jurors that Jefferies’ customers, including AllianceBernstein, were sophisticated enough not to be swayed by the trader’s lies.
They are “not sales techniques to be proud of,” the lawyer, Dane Butswinkas, said, but it is “not securities fraud.”
Butswinkas quickly ran through a number of statements Litvak is said to have made in his dealings with customers including, “we’re on the same page, big man,” and “I’m willing to work for f—ing zero.”
He called the comments “used car salesman banter.”
Prosecutors had a different take.
“The evidence will show [Litvak’s] lies meant more money for Jefferies and less for customers,” Heather Cherry, an assistant US Attorney, told the jury.
The trial is expected to last three weeks.