{"id":5937,"date":"2016-04-05T00:00:00","date_gmt":"2016-04-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/04\/two_exstate_street_executives_1"},"modified":"2016-04-05T00:00:00","modified_gmt":"2016-04-05T05:00:00","slug":"two-exstate-street-executives-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/two-exstate-street-executives-1\/","title":{"rendered":"Two Ex-State Street Executives Face Criminal Charges Involving Institutional Investor Fraud"},"content":{"rendered":"

Federal prosecutors are charging Ross McClellan and Edward Pennings with securities fraud<\/a> and wire fraud. McLellan was formerly with State Street Corp.\u2019s (STT) brokerage firm unit in the US and Pennings worked for the bank in London. According to the government, the two men secretly charged six clients excess commissions for billions of dollars of securities trades. The clients included government pension funds in Britain and Ireland and a sovereign-wealth fund in the Middle East.<\/p>\n

The two former State Street executives allegedly charged clients the trading commissions in addition to the fees that the latter had already agreed to pay and even though they specifically were not supposed to charge them commissions. The men purportedly ran their scam from 2\/10 through 9\/11, allegedly making millions of dollars in the process. <\/p>\n

Although State Street wasn\u2019t officially named in the criminal indictment, The Wall Street Journal <\/em>reports that the firm’s senior vice president, Carolyn Cichon, verified that two of the bank\u2019s former employees were involved in the matter. It was in 2014 that the U.K. Financial Conduct Authority fined State Street\u2019s unit in that country $32.4M for charging clients $20.2M in excess commissions. <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Federal prosecutors are charging Ross McClellan and Edward Pennings with securities fraud and wire fraud. McLellan was formerly with State Street Corp.\u2019s (STT) brokerage firm unit in the US and Pennings worked for the bank in London. According to the government, the two men secretly charged six clients excess commissions for billions of dollars of […]<\/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":[3741],"tags":[],"class_list":["post-5937","post","type-post","status-publish","format-standard","hentry","category-securities-fraud"],"yoast_head":"\nTwo Ex-State Street Executives Face Criminal Charges Involving Institutional Investor Fraud — Investor Lawyers Blog — April 5, 2016<\/title>\n<meta name=\"description\" content=\"Federal prosecutors are charging Ross McClellan and Edward Pennings with securities fraud and wire fraud. 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