The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by Mario Tama/Getty Images

Company Symbol % Change
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No. 15: BNY Mellon Securities

<strong>Total Settlement:</strong> $24 million<br /><strong>Disgorgement:</strong> $23 million<br /><strong>Penalty:</strong> $1 million

During eight years of work at BNY Mellon Securities, manager Mark Shaw operated what the <a href="http://www.sec.gov/litigation/admin/2011/34-63724.pdf">SEC described</a> as a "best execution" fraud -- a technique to give hedge-fund clients a better deal than his own customers, earning him a higher commission. The defunct securities unit of New York's BNY Mellon had an oversight committee to make sure that best-execution fraud would not happen, and Shaw was on that committee. BNY Mellon fired Shaw, who was not charged criminally, in 2008. In a settlement with the SEC, Shaw agreed to a ban from the securities industry and payment of $195,300 in disgorgement, interest of $23,291, and $150,000 in penalties.</p>

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