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Wrongly Convicted Database Record
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Charge: |
Fraud (securities) |
Sentence: |
2 years & $2 million fine |
Years Imprisoned: |
0.63 |
Year Crime: |
2013 |
Year Convicted: |
2017 |
Year Cleared: |
2018 |
U.S. State or Country of Crime: |
Connecticut - Federal Case |
County or Region of Crime: |
Hartford |
City of Crime: |
Hartford |
Result: |
Judicially Exonerated Released |
Summary of Case: |
"Jesse Litvak was a Hartford, Connecticut bond trader wrongly convicted twice in federal court of charges related to allegedly lying to clients -- the first time in 2014 and the secon time in 2017. Litvak was indicted and arrested in January 2013. Litvak Jefferies Group LLC bond trader. The prosecution's case was based on the allegation that he lied to customer causing them to overpay for bonds they bought, and accept lower prices for bonds they sold. He was released on bond pending his trial. In March 2014 a jury convicted Litvak of 10 counts of securities fraud, one count of defrauding TARP, and four counts of making false statements. On July 23, 2014 U. S. District Ct Chief Judge Janet C. Hall in New Haven sentenced Litvak to a two-year prison sentence and payment of a 1.75 million dollar fine. Litvak appealed and was allowed to remain free on bond. On December 8, 2015 the U.S. 2nd Circuit Ct of Appeals reversed Litvak's convictions on the basis Judge Hall erroneously denied the admission of defense expert testimony, and remanded for a new trial on the securities fraud charges only. Able to present the expert evidence, in the jury acquitted Litvak of nine counts of securities fraud and convicted him of one. Judge Hall relied on all of Litvak's alleged conduct that he had originally been been found guilty of after his first trial and gave him a more severe sentence than after his first trial, even though he had only been convicted of one count. Hall sentenced Litvak on April 26, 2017 to two years in prison and payment of a $2 million fine ($250,000 more than his sentence in 2014). Litvak was denied bail to remain free on appeal, and he reported to begin serving his sentence on September 19, 2017. On May 3, 2018 the U.S. 2nd Circuit Ct of Appeals reversed Litvak's convictions and ordered a new trial on the basis trial Judge Janet Hall materially erred by admitting evidence that the counterparty representative in the sole transaction underlying Litvak's conviction mistakenly believed Litvak was his agent -- when in fact he wasn't. The next day, May 4, Litvak was released on bond pending the governments decision on whether to retry him. On July 10, 2018 the appeals court denied the governments motion for a rehearing of its ruling. On July 30, 2018 the U.S. Attorney's Office's motion to dismiss the indictment was granted. On December 6, 2018 a Connecticut federal judge agreed to dismiss the U.S. Securities and Exchange Commission’s civil suit against Jesse Litvak in the wake of the end of his five-year criminal case in which he was convicted twice but saw those convictions overturned." |
Conviction Caused By: |
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Innocence Proved By: |
"On May 3, 2018 the U.S. 2nd Circuit Ct of Appeals reversed Litvak's convictions and ordered a new trial on the basis trial Judge Janet Hall materially erred by admitting evidence that the counterparty representative in the sole transaction underlying Litvak's conviction mistakenly believed Litvak was his agent -- when in fact he wasn't. The next day, May 4, Litvak was released on bond pending the governments decision on whether to retry him. On July 10, 2018 the appeals court denied the governments motion for a rehearing of its ruling. On July 30, 2018 the U.S. Attorney's Office's motion to dismiss the indictment was granted." |
Defendant Aided By: |
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Compensation Awarded: |
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Was Perpetrator Identified? |
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Age When Imprisoned: |
42 |
Age When Released: |
43 |
Sex: |
Male |
Skin/Ethnicity: |
White |
Information Source 1: |
"Bond Trader Jesse Litvak's Ordeal Ends as U.S. Drops Fraud Case, By Chris Dolmetsch, Bloomberg.com, July 30, 2018" |
Information Location 1: |
https://www.bloomberg.com/news/articles/2018-07-30/u-s-drops-criminal-case-against-bond-trader-jesse-litvak-jk8m4nsv |
Information Source 2: |
"US v. Litvak, No. 17-1464-cr (2nd Cir. COA, May 3, 2018) (Rehearing denied 7-10-2018) (Reversing securities fraud conviction and remanding for a new trial.)" |
Information Location 2: |
https://scholar.google.com/scholar_case?case=542851747917394072&q=Jesse+Litvak&hl=en&as_sdt=2006 |
Information Source 3: |
"US v. Litvak, 808 F. 3d 160 (2nd Cir COA, 12-8-2015) (Reversing all convictions and remanding for new trial on security fraud charges only.)" |
Information Location 3: |
https://scholar.google.com/scholar_case?case=6691855547281922524&q=Jesse+Litvak&hl=en&as_sdt=2006 |
Information Source 4: |
"SEC Gives Up On Litvak Suit After Feds Drop Charges, Law360.com" |
Information Location 4: |
https://www.law360.com/whitecollar/articles/1109016/sec-gives-up-on-litvak-suit-after-feds-drop-charges?nl_pk=47772215-079e-4c53-bff2-f8ab291d2f3e&utm_source=newsletter&utm_medium=email&utm_campaign=whitecollar |
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Innocents Database Created and Maintained by Hans Sherrer innocents@forejustice.org