Litvak was charged with 16 counts (11 counts of securities fraud) including making false statements to the federal government, securities fraud and fraud connected with the Troubled Asset Relief Program. In addition, he was also accused of creating a fictional third-party seller for some of the trades, enabling him to charge an extra commission, which he was not entitled to. It is believed the scam generated $2.7 million of revenue for Jefferies, while defrauding public and private funds like TARP.
Litvak could face up to 20 years in prison if convicted on just the securities fraud charges alone. If convicted on the one count of TARP fraud he could face up to a 10 year maximum sentence. And don't forget about the false statements to the government charges, four in total, each punishable by as much as five years.
Jesse Litvak currently resides in New York and is only 38 years old.
A former UBS trader was found guilty of perpetrating the largest fraud in British history costing Swiss banking giant UBS $2.3 billion. The judge in the case sentenced 32 year-old Kweku Adoboli to seven years in prison and ordered the Ghana native to serve half of the term before being considered for early release on probation. Taking into account the time Adoboli has already served since his September 2011 arrest, he could get out in as little as 29 months. Prosecutors accused Adoboli of trading well in excess of authorized limits and doctoring the books to hid his true investing moves.
A US District Court Judge rulled on Monday that a lawsuit filed by the Federal Housing Finance Agency against Deutsche Bank AG will proceed. Judge Denise Cote denied Deutsche Bank's request to have the claim thrown out, though she did reject several of the FHFA's claims. “The facts alleged in the amended complaint are sufficient to plead fraud with respect to the offering material’s representations regarding mortgage underwriting standards,” Cote explained in her ruling.
Paul Ceglia, a man who claims to be entitled to 50 percent of Facebook, was arrested by federal authorities Friday and charged with mail and wire fraud. If convicted, the 39 year-old businessman could be sentenced to as much as 40 years in prison. The charges against Ceglia claim that he doctored contracts and falsified emails for evidence to support his lawsuit against Facebook founder Mark Zuckerberg whom Ceglia claimed he hired to design the social networking behemoth.
Iowa-based brokerage house PFGBest filed for bankruptcy Tuesday, sending the financial industry into a scare after regulators accused the firm's Peregrine Financial Group of misappropriating customer funds over the last two years and lying to regulators to cover more than $200 million in losses. PFG's founder and chairman, Russell Wasendorf, Sr., attempted suicide Monday morning outside the firm's Cedar Falls, Iowa offices, before the scandal was made public.
Drugmaker GlaxoSmithKline agreed to pay $3 billion Monday to settle charges that it failed to report safety issues with a few of its most successful drugs. Under the terms of the settlement reached with the Justice Department, GSK will pay a $1 billion fine as penalty for criminal wrongdoing plus another $2 billion to settle civil claims. The penalty is the largest ever paid by a pharmaceutical company and the largest settlement associated with a fraud case in US history. The firm will plead guilty to two counts of selling misbranded drugs, Paxil and Wellbutrin, across state lines.
An attorney representing a group of banks in a lawsuit against bond insurer MBIA on Friday accused the firm's chief executive, Joseph W. Brown Jr., of illegal insider trading of his own firm's stock. The lawyer, Robert J. Giuffria, said that Brown had extensive inside knowledge of MBIA's impending restructuring when he purchased a cache of the company's stock in the months leading up to it. An attorney representing MBIA disputed Giuffria's claims, noting the Brown's stock purchases were all approved beforehand by counsel and were in compliance with regulatory requirements and company policies.
A growing number of investors have been launching lawsuits against former MF Global cehief executive Jon Corzine, seeking to recover funds that have been discovered missing since the equity firms' bankruptcy filing in October. Just days after the firm filed for bankruptcy protection, regulators noticed that a substantial amount of customers' funds was missing from their accounts, and regulators are still trying to locate some $1.2 billion in missing money.
Israeli Internet security firm Trusteer has discovered a new Trojan that attacks bank accounts, then covers its tracks so that the account holder can't even tell they've been attacked. A spokesman for Trusteer likened the crime to burglaries in movies where the criminals replace live camera feeds with taped footage to avoid detection by guards. But instead of switching video, the new version of the SpyEye Trojan replaces Web pages, making it appear as if money that has been stolen is still in the account.
Michael Woodford, the embattled former CEO of Olympus Corp., gave up on his bid to return to the company Friday, saying the saga has taken a hefty toll on his family. Woodford also noted that he would sue Olympus for improper dismissal, having already detained an attorney to begin proceedings in the UK. When Woodford was named CEO by Olympus, a Japan-based camera and medical device maker, he lasted just two weeks in the position as he was fired after blowing the whistle on a $1.7 billion accounting fraud at the company.