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Bond Traders Can Get in Trouble Without Lying to Customers

Matthew S Levine

The customer would pay 70. Federal prosecutors decided that lying to your customers about the price you had paid for bonds is fraud, and that people should go to prison for it. What is surprising is that a lot of judges and juries seem to have disagreed, and recently several of these traders—who indisputably lied to customers about the prices they had paid for bonds—were either acquitted of fraud, or had their convictions tossed out by judges after juries had convicted them.