State Street Corp. Reportedly Violated Securities Law

Massachusetts regulators say State Street Corp. violated state securities law by overcharging customers as much as $200 million for out-of-pocket expenses, including secure electronic messages.

Secretary of State William Galvin said Wednesday that his office's securities division filed an administrative complaint against State Street Global Markets, an arm of the Boston-based investment firm, alleging what Galvin called "dishonest and unethical activity."

The complaint says the company charged customers $5 for electronic messages that actually cost 25 cents to send.

State Street disclosed in December that it was conducting an internal review of millions in expenses that may have been improperly invoiced over an 18-year period.

The company, in a statement Wednesday, said it regretted the error and was committed to fully compensating affected clients upon completion of the review.

Copyright AP - Associated Press
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