Ex-trader at Cantor Fitzgerald indicted on securities fraud
{{#rendered}} {{/rendered}}
A former trader for Cantor Fitzgerald & Co. has been indicted on securities fraud charges.
Federal prosecutors in Connecticut say 35-year-old David Demos, of Westport, cheated customers by fraudulently manipulating prices for residential mortgage-backed securities. As a result, investigators say, Demos and the firm profited illegally and victims sustained millions of dollars in losses.
Demos worked as a trader and managing director at Cantor Fitzgerald from November 2011 until his employment was terminated in February 2013. He was indicted Wednesday on six counts of securities fraud.
{{#rendered}} {{/rendered}}
Attorneys for Demos did not immediately respond to a request for comment.
The investigation is part of a federal and state effort focused on fraud and abuse in the mortgage securities market and the federal government bailout that followed the 2008 financial crisis.