Tags: state | street | hidden | fee | fraud

Ex-State Street Executive Convicted in US of Hidden Fee Fraud

Ex-State Street Executive Convicted in US of Hidden Fee Fraud
(Andrey-Popov/Dreamstime)

Tuesday, 26 June 2018 05:37 PM

A former State Street Corp executive was convicted on Tuesday of participating in a scheme to defraud several of the bank's customers by charging them secret commissions on billions of dollars of trades.

A federal jury in Boston found Ross McLellan, 46, guilty on five of six counts the one-time State Street executive vice president faced, including conspiracy, securities fraud and wire fraud.

The verdict came on the second day of jury deliberations and followed a trial of about three weeks. U.S. District Judge Leo Sorokin scheduled McLellan's sentencing for Oct. 10.

"We're disappointed in the verdict and optimistic in an appeal that will include an enormous amount of significant issues, some of which are virtually unprecedented," said Martin Weinberg, McLellan's lawyer.

McLellan is one four ex-employees of the Boston-based bank who since 2016 have faced U.S. charges that they engaged in schemes to overcharge institutional clients, allowing State Street to earn millions of dollars.

Two of those former executives - Edward Pennings and Richard Boomgaardt - pleaded guilty in 2017. Both agreed to cooperate with prosecutors and testified against McLellan in hopes of leniency when they are sentenced. 

© 2019 Thomson/Reuters. All rights reserved.

   
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A former State Street Corp executive was convicted on Tuesday of participating in a scheme to defraud several of the bank's customers by charging them secret commissions on billions of dollars of trades.
state, street, hidden, fee, fraud
189
2018-37-26
Tuesday, 26 June 2018 05:37 PM
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