US Attorney: State Street Agrees to Pay $64M to Resolve Federal Fraud Charges - NECN
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US Attorney: State Street Agrees to Pay $64M to Resolve Federal Fraud Charges

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    US Attorney: State Street Agrees to Pay $64M to Resolve Federal Fraud Charges
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    Global financial services company State Street has agreed to pay more than $64 million in an effort to resolve federal criminal and civil fraud charges, according to Boston's acting U.S. attorney.

    Federal investigators say the Boston-based company schemed to defraud at least six of the bank's clients through secret commissions through securities trades.

    In resolution documents, State Street admitted to to conspiring to adding secret commissions to certain trades, and that it took steps to conceal the commissions.

    "Banks that defraud their clients in this way must be held accountable, no matter how big they are," acting U.S. Attorney William Weinreb said.

    Two former executives were also charged last year with conspiracy, securities fraud and wire fraud in connection wth the same scheme. Their trials are set to start in October.

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