Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Business Crimes Hotline
MASSACHUSETTS
Financial Services Executives Indicted
On April 5, a grand jury indicted two former executives at State Street Corp., the Boston-based financial services firm, with defrauding clients of millions of dollars on secret commissions applied to securities trades. Ross McLellan, a former head of the bank's U.S. broker-dealer unit, and Edward Pennings, a former senior managing director, were charged with securities fraud, wire fraud, and conspiracy.
According to the indictment, McLellan and Pennings conspired from February 2010 to September 2011 to charge hidden commission on fixed income and equity trades for six clients, and conceal the commissions.
The clients' agreements with the bank called for agreed-upon fixed fees for managing the money, with no commissions charged per trade. McLellan and Pennings allegedly concealed the fraudulent commissions by lumping them together in the post-trade reports provided to the clients. When one client asked if it had been charged a commission, McLellan and Pennings initially denied that the client had been charged, and later claimed that it had been “inadvertent” and limited to certain trades. McLellan and Pennings also allegedly misled the bank's own compliance staff about the commissions.
'
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
How Secure Is the AI System Your Law Firm Is Using?
What Law Firms Need to Know Before Trusting AI Systems with Confidential Information In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
COVID-19 and Lease Negotiations: Early Termination Provisions
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.