A former Cantor Fitzgerald trader has been indicted on charges that he defrauded investors by lying about the price of mortgage bond transactions he handled for them after the financial crisis, U.S. prosecutors said on Friday.
David Demos, 35, was charged with securities fraud in an indictment filed in federal court in New Haven, Connecticut, becoming the latest trader to face charges for cheating customers on prices of mortgage-backed securities.
Demos, of Westport, Connecticut, appeared in court on Friday for an arraignment. In a joint statement afterwards, his legal team, which includes lawyers Peter Chavkin and Stanley Twardy, said Demos would fight the charges.
“Mr. Demos denies the charges made against him, including the allegations that his communications and negotiations with counterparties were ‘material,'” his lawyers said in the statement. “He intends to vigorously defend himself.”
Prosecutors said Demos, a trader and managing director at Cantor Fitzgerald from November 2011 to February 2013, defrauded customers by fraudulently inflating the price at which the company could buy residential mortgage-backed securities.
The goal, prosecutors said, was to induce customers to pay a higher price for mortgage bonds and to decrease the price at which Cantor could sell them in order to get investors to sell bonds at cheaper prices.
The scheme allowed Cantor Fitzgerald and Demos to reap illegal profits, prosecutors said, while causing their customers to sustain millions of dollars of losses.
The victims included asset managers and firms affiliated with or subsidiaries of recipients of funds from the U.S. government’s financial crisis-era bailout program, the Troubled Asset Relief Program, prosecutors said.
The case marked the latest action by federal prosecutors in Connecticut against traders accused of cheating customers on prices of mortgage-backed securities.
In December 2015, a federal appeals court reversed a first conviction in the probe against Jesse Litvak, a former Jefferies managing director who was found guilty in 2014 and sentenced to two years in prison.
Litvak, who denies wrongdoing, is scheduled to face re-trial on Jan. 4. Jefferies, a unit of Leucadia National Corp
Others charged to date include two former Royal Bank of Scotland Group Plc
The case is U.S. v. Demos, U.S. District Court, District of Connecticut, No. 16-cr-00220.
(Reporting by Nate Raymond in New York; Editing by Phil Berlowitz and Leslie Adler)
John Oliver cites Donald Trump’s final offer for Greenland: ‘$200 and I’ll throw in Don Jr.’
"Last Week Tonight" host John Oliver's favorite highlight of the week was, of course, President Donald Trump's decision that he wanted to buy Greenland.
In his opener Sunday, the HBO host said that he wasn't all that surprised given Trump's track record.
"Of course, he f*cking did. Of course, he did. Greenland is icy, distant and autonomous is exactly Trump's type," Oliver said, showing a photo of Trump with the first lady.
Florida teacher removed after bizarre rant about students not standing for the pledge
Students were faced with a white-board rant in a classroom attacking anyone not standing up for the Pledge of Allegiance.
The moment went viral locally on Thursday after students posted Daniel Goodman‘s “inappropriate” message to students at First Coast High School in Duval County, Florida, The Atlanta Black Star reported.
“THINK: We had about a half million Americans die in our Civil War, which was largely to get rid of slavery. There are no longer separate water fountains and bathrooms in Jacksonville for ‘white’ and ‘colored,’ as Mr. Goodman remembers from the 1960?s. We had an amendment to the U.S. Constitution allowing women the right to vote. We have had a Black president. The superintendent of Duval Schools is a Black woman. Mr. Fluent, our principal, replaced a Black man. Mr. Simmons, who now is a DC PS admninistrator.”
Angry Minnesota farmer bashes ‘insulting’ Trump comments that ‘we’re great patriots’ during his trade war
President Donald Trump has insulted at least one Minnesota farmer by his claim that farmers are "great patriots" who want him to continue his trade fight against China.
"This wound is self-inflicted, by our president," said Gary Wertish, who is the Minnesota Farm Bureau president. "We definitely agreed with it in the beginning. But it doesn’t appear that there’s a plan B. Some of the callous comments come, especially from the president, you know, that farmers are 'winning,' we’re 'great patriots,' that’s very insulting. That’s coming from someone who never has faced the challenges of a family farmer. I go into the bank and tell the lender I can’t make the payment because we lost our market? The banker is going to tell me you don’t have to make your payment because you’re a patriot."