A federal grand jury in New Haven recently returned a 10-count indictment against three former New York-based bond traders this week, authorities said.

Ross Shapiro, Michael Gramins and Tyler Peters were indicted last week on conspiracy and fraud offenses and were scheduled for arraignment this morning before U.S. Magistrate Judge Donna F. Martinez in Hartford.

According to the indictment, Shapiro, Gramins and Peters all supervised the Residential Mortgage-Backed Securities (RMBS) desk at Nomura Securities International in New York. There, the trio conspired to defraud customers by fraudulently inflating the price at which Nomura could buy an RMBS bond and fraudulently deflating the price at which the firm could sell those bonds, so that Nomura and the three defendants profited illegally off those transactions, the indictment said.

Shapiro, Gramins and Peters also trained and encouraged their subordinates to lie to customers, created fictitious third parties in an effort to increase their profits and colluded with at least one outside client to deceptively broker trades on their behalf, according to a statement from the U.S. Attorney’s office for the District of Connecticut.

The victims of this scheme include funds from around the world, retirement plan providers and a Troubled Asset Relief Program (TARP) fund manager.

The indictment, which was unsealed on Tuesday, charges Shapiro, Gramins and Peters each with one count of conspiracy, two counts of securities fraud and seven counts of wire fraud.

In a parallel action, the Securities and Exchange Commission also announced related civil fraud charges against the three defendants.

The SEC’s complaint alleges, among other things, that the trio’s lies and omissions, as well as those they trained their subordinates to make, generated at least $7 million in additional profits for Nomura.