Defendant Name:
Jefferies LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Leucadia National Corporation
SIC Code:
7011
CUSIP:
52728810
Document Reference:
34-71695
Document Details
Legal Case Name
In the Matter of Jefferies LLC (formerly known as Jefferies & Company, Inc.)
Document Name
Order Instituting Administrative Proceedings Pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
Document Date
12-Mar-2014
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
On March 12, 2014, the SEC instituted settled administrative proceedings against Jefferies LLC (formerly known as Jefferies & Company, Inc.). According to the SEC: "Respondent failed reasonably to supervise Jesse C. Litvak ('Litvak') and certain other representatives on the Respondent's mortgage-backed securities ('MBS') desk with a view to preventing and detecting their violations of the federal securities laws during the time period from 2009 to 2011.... From 2009 to 2011, Litvak and certain other representatives lied to, or otherwise misled, customers about the price at which Respondent had bought RMBS [residential MBS] and consequently the amount of the firms' profit on the trades. This misconduct deceived customers about the price at which Respondent had recently acquired the RMBS. Respondent's implementation of its supervisory procedures relating to review of its MBS desk representatives' electronic communications with customers was inadequate to prevent and detect these misrepresentations to customers."
Disgorgement & Penalty Information
Resolutions
Censured
Compliance Related Independent Consultant
Various undertakings
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:
Disgorgement
Individual:
$4,200,402.00
Shared:
Civil Penalty
Individual:
$4,200,402.00
Shared:
Pre-Judgment Interest
Individual:
$292,515.00
Shared:
