Ex-Cantor Fitzgerald Bond Trader Latest to Face Fraud Charge
- David Demos indicted over mortgage-backed securities sales
- Charges are part of a U.S. crackdown on fraud in market
Traders work on the floor of the New York Stock Exchange.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
A former Cantor Fitzgerald & Co. trader was charged with defrauding customers by lying about prices of mortgage-backed securities, becoming the latest target of a U.S. crackdown on deceptive practices in the bond market.
David Demos, 35, of Westport, Connecticut, is accused of falsifying prices at which his firm bought residential mortgage-backed bonds to get customers to pay more, and misrepresenting transaction prices to induce clients to sell the bonds for less, prosecutors said.