{"id":1957,"date":"2018-01-03T13:52:25","date_gmt":"2018-01-03T19:52:25","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1957"},"modified":"2022-03-22T15:07:54","modified_gmt":"2022-03-22T20:07:54","slug":"ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/","title":{"rendered":"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for  $975K"},"content":{"rendered":"<p>\t\t\t\tThe US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled <a href=\"https:\/\/www.securities-fraud-attorneys.com\" rel=\"noopener noreferrer\" target=\"_blank\">institutional investor fraud<\/a> charges accusing him of taking part in a scam to hide from certain clients, which included religious organizations, retirement funds, and charities, that they were paying substantially more than they thought for trading orders. Bassily, who agreed to pay more than $988K in disgorgement, prejudgment interest, plus a civil penalty, settled the case without denying or admitting to the charges.<\/p>\n<p>The regulator brought the case against him in 2016. According to its complaint, over five years, Basily hid from transition management customers that their brokerage orders were being directed to an offshore affiliate where concealed charges were put into the price that they paid for selling and purchasing securities. These secret charges were an add on and frequently much higher than the commissions that customers paid for their orders. For example, stated the SEC\u2019s complaint, one customer who paid $699K in commissions also paid $9.6M in these hidden fees.<\/p>\n<p>Meantime, Bassily allegedly engaged in deceptive practices, including \u201cfalse and misleading statements\u201d to customers, working with traders to maximize theses hidden charges, and taking steps to hide these unauthorized charges from customers.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/#more-1957\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled institutional investor fraud charges accusing him of taking part in a scam to hide from certain clients, which included religious organizations, retirement funds, and charities, that they were paying substantially more than they thought for [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3795,3761],"tags":[2932],"class_list":["post-1957","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","tag-khaled-bassily"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K &#8212; Investor Lawyers Blog &#8212; January 3, 2018<\/title>\n<meta name=\"description\" content=\"The US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled &#8212; January 3, 2018\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K &#8212; Investor Lawyers Blog &#8212; January 3, 2018\" \/>\n<meta name=\"twitter:description\" content=\"The US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled &#8212; January 3, 2018\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K &#8212; Investor Lawyers Blog &#8212; January 3, 2018","description":"The US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled &#8212; January 3, 2018","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/","twitter_card":"summary_large_image","twitter_title":"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K &#8212; Investor Lawyers Blog &#8212; January 3, 2018","twitter_description":"The US Securities and Exchange Group announced that Khaled Bassily, the ex-head of ConvergEx Groups\u2019 transition management business, has settled &#8212; January 3, 2018","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K","datePublished":"2018-01-03T19:52:25+00:00","dateModified":"2022-03-22T20:07:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/"},"wordCount":479,"keywords":["Khaled Bassily"],"articleSection":["SEC Enforcement","SEC Settlements","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/","url":"https:\/\/www.investorlawyers.com\/blog\/ex-convergex-group-executive-accused-defrauding-charities-retirement-funds-settles-fraud-charges-975k\/","name":"Ex-ConvergEx Group Executive Accused of Defrauding Charities and Retirement Funds Settles Fraud Charges for $975K &#8212; 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