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Written by 6:33 pm Blog, Securities Fraud Articles

Jefferies LLC Pays $25 Million Penalty

According to the U.S. Attorney’s Office of the District of Connecticut, New York based broker dealer, Jefferies LLC, entered into a non-prosecution agreement and will pay $25 million. The agreements stemmed from the companies trading in residential mortgage-backed securities (RMBS) and funds created through the Troubled Asset Relief Program (TARP).

The report stated that certain employes in the Jefferies’ Mortgage and Asset-Backed Securities Trading Group allegedly fraudulently misrepresented the  risk of RMBS between buyers and sellers to increase the profitability of the trades. In addition, the employees purportedly charged the buyer an extra commision by concealing that the RMBS were sold from Jefferies’ own inventory.

To make matters worse, members of Jefferies management allegedly turned a blind eye to the scam and the employees who were making misrepresentations to customers. The report also indicated that when Jefferies became aware of the alleged fraud they conducted an internal investigation and cooperated fully with the government.

Under the terms of the agreement, up to $11 million will be paid in restitution to the victims and Jefferies will address the deficiency and policies of its Mortgage and Asset-Backed Securities Trading Group.

The foregoing information which is publicly available, here, is being provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For a free consultation with a securities attorney, please call the White Law Group at (312)238-9650 for a free consultation.

To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.

Tags: , , , , , , Last modified: July 17, 2015