{"id":6099,"date":"2017-01-20T18:26:52","date_gmt":"2017-01-21T00:26:52","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1366"},"modified":"2017-01-20T18:26:52","modified_gmt":"2017-01-21T00:26:52","slug":"state-street-pay-64m-settle-us-probes-secret-fees-charged-institutional-clients","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/state-street-pay-64m-settle-us-probes-secret-fees-charged-institutional-clients\/","title":{"rendered":"State Street to Pay Over $64M to Settle US Probes Over Secret Fees Charged to Institutional Clients"},"content":{"rendered":"

\t\t\t\tState Street Corp. (STT) will pay $32.3M to the US Securities and Exchange Commission and $32.3 to the federal government to resolve probes accusing the firm of bilking six clients on billions of dollars of trades by charging them secret commissions<\/a>. As part of the settlement, the Massachusetts-based bank agreed to a deferred prosecution deal and admitted to conspiring to include these secret commissions on the trades conducted. State Street reportedly made at least\u00a0$20M in commissions without these clients knowing they were paying.<\/p>\n

According to prosecutors, from \u201910 to \u201911, former State Street executive Ross McLellan and ex-senior managing director Edward Pennings conspired to charge the secret commissions involving equity and fixed income trades that were conducted for these clients.<\/p>\n

These commissions were in addition to fees that clients had consented to pay even though there had been written instructions given to State Street traders noting that these six customers didn\u2019t have to pay these fees. The clients had been working with a State Street unit that supports institutional customers in liquidating big investment portfolios or moving investments between asset managers.<\/p>\n

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

State Street Corp. (STT) will pay $32.3M to the US Securities and Exchange Commission and $32.3 to the federal government to resolve probes accusing the firm of bilking six clients on billions of dollars of trades by charging them secret commissions. As part of the settlement, the Massachusetts-based bank agreed to a deferred prosecution deal […]<\/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":[3795,3761,3741],"tags":[2721],"class_list":["post-6099","post","type-post","status-publish","format-standard","hentry","category-sec-settlements","category-securities-and-exchange-commis","category-securities-fraud","tag-state-street"],"yoast_head":"\nState Street to Pay Over $64M to Settle US Probes Over Secret Fees Charged to Institutional Clients — Investor Lawyers Blog — January 20, 2017<\/title>\n<meta name=\"description\" content=\"State Street Corp. 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