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Trial Begins For Trader In Fraud Case

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File photo of a judge's gavel. (Photo by Chip Somodevilla/Getty Images)

File photo of a judge’s gavel. (Photo by Chip Somodevilla/Getty Images)

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NEW HAVEN, Conn. (AP) - The former managing director of an investment bank charged with defrauding investment funds established by the Treasury Department in 2009 as part of the government’s response to the financial crisis is headed to trial.

Jesse C. Litvak of New York City faces trial in New Haven on charges of fraud and making false statements to the federal government.

Opening arguments are planned for Tuesday.

The indictment alleges Litvak, while a registered broker-dealer and managing director at Jefferies & Co., Inc., engaged in a scheme to defraud customers on residential mortgage-backed securities trades.

He worked on the company’s trading floor in Stamford.

Authorities say Litvak, fired by the company in 2011, defrauded investment funds of more than $2 million.

Litvak has pleaded not guilty and denied he defrauded anyone.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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