Ex-Jefferies & Co. Managing Director Jesse Litvak, deemed an “elite” fraudster by prosecutors for being the only person convicted of fraud over a $20 billion government bailout program, was sentenced to two years in prison for lying to customers about mortgage-backed securities.

Defense lawyers successfully argued that their client deserved less than the maximum 10-year sentence, or the nine years sought by the government, by saying his fraud was less insidious than a typical Ponzi scheme or “boiler room.” Litvak’s lawyers had asked for a maximum 14-month term.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.