Jefferies Group reaches $25 million MBS settlement
Linked to investigation in 2011
Jefferies Group reached an agreement with the United States Attorney for the District of Connecticut to pay $25 million to settle an investigation relating to the purchases and sales of mortgage-backed securities that came to light in 2011.
The settlement is broken into approximately $11 million to trading counterparties impacted by those activities, $10 million to pay a fine to the U.S. Attorney’s Office and approximately $4 million to pay to the SEC.
A link to the SEC filing can be found here.
This falls in line with a previous case with a Jefferies employee.
As HousingWire previously covered in January 2013, 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.