Bankers Charged With Plot to Jack Up Trading Commissions at State Street
- U.S. accuses Ross McLellan, Edward Pennings of `brazen fraud'
- Indictment cites e-mails, conversations, `backroom plotting'
The State Street Financial Center building located at One Lincoln Street in the Financial District of Boston.
Photographer: Scott Eisen/BloombergThis article is for subscribers only.
Two former executives at State Street Corp. were indicted in what the U.S. Justice Department said was a “brazen fraud” involving secret commissions applied to billions of dollars in securities trades.
Ross McLellan, 44, and Edward Pennings, 45, conspired from February 2010 to September 2011 to place commissions on fixed-income and equity trades for at least six clients of the bank’s transition management business, according to U.S. Attorney Carmen Ortiz in Boston. That unit helped institutional clients move investments among asset managers and liquidate large portfolios.