Appeals court reverses conviction of ex-Wall Street trader

Posted: Thursday, May 3, 2018 9:14 am | Updated: 9:47 am, Thu May 3, 2018.

NEW YORK (AP) — An appeals court in New York says a former Wall Street trader can be released from prison because he was improperly convicted of taking advantage of a government bailout program.

The ruling Thursday by the 2nd U.S. Circuit Court of Appeals frees Jesse Litvak from a two-year prison sentence he was serving after his securities fraud conviction last year.

Authorities say he was the first person convicted of a crime related to the program that used bailout funds in the financial meltdown to restart trading markets for mortgage-backed securities.

It is the second time the appeals court has reversed a conviction of Litvak since he was indicted in 2013. The 2nd Circuit earlier reversed his conviction on charges of securities fraud, Troubled Asset Relief Program fraud and making false statements.

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