Ex-Nomura Trader Avoids Jail for Lying to MBS Clients (Correct)

Former Nomura Securities International Inc. trader Michael Gramins avoided a prison term for lying to the firm’s clients about mortgage-backed bond prices, dealing the government another blow in a troubled crackdown on tactics used in the trading of complex securities.

A former executive director on Nomura’s residential mortgage-backed securities desk, Gramins was sentenced Thursday by U.S. District Judge Robert Chatigny in Hartford, Connecticut, to two years probation with six months home confinement.

Gramins, 38, who a jury convicted in 2017, was among more than a half-dozen traders charged by federal prosecutors in Connecticut with misrepresenting the prices of mortgage-backed securities ...