Former State Street executives indicted

Two former executives at State Street were indicted in what the U.S. Justice Department said was a “brazen fraud” involving secret commissions applied to billions of dollars in securities trades.

Bloomberg News reports that Ross McLellan, 44, and Edward Pennings, 45, conspired from February 2010 to September 2011 to place commissions on fixed-income and equity trades for at least six clients of the bank’s transition management business, according to U.S. Attorney Carmen Ortiz in Boston.

That unit helped institutional clients move investments among asset managers and liquidate large portfolios.

“The secret conversations and backroom plotting laid bare in today’s charges paint a vivid picture of a brazen fraud,” Ortiz said Tuesday in a statement. The men “plotted to overcharge their clients by millions of dollars, and to hide their tracks.”

The defrauded clients included an Irish government pension fund, a British government pension fund and a Middle East sovereign wealth fund, according to the indictment.

To access the complete Bloomberg News article hit the link below:

Bankers Charged With Plot to Jack Up Trading Commissions at State Street

Credit Suisse CEO Says Risk `Well Managed' After $1 Billion Loss



JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News