NEW HAVEN, Conn. (AP) — 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.
Attorneys for Demos say he denies the charges and intends to "vigorously defend himself."
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 following the 2008 financial crisis.