A former trader of residential mortgage-backed securities at Jefferies & Company, Jesse Litvak, was indicted on charges of lying to investors about the prices and commissions of securities sold as part of a government program to prop up the mortgage bond market.
The Justice Department charged Mr. Litvak with 11 counts of securities fraud in connection with so-called R.M.B.S. transactions that were part of the financial bailout under the Troubled Asset Relief Program, or TARP. The Securities and Exchange Commission filed parallel civil charges accusing him of fraud.
