US Financial Services Company to Pay $32 Million for Secretly Charging Clients

Global financial services company State Street Corporation agreed to pay a $32.3 million to resolve the US government’s criminal investigation into a fraud scheme in which the company secretly charged its clients, the Department of Justice said in a press releaseon Wednesday.

WASHINGTON (Sputnik) — The company appears to have cheated its customers by agreeing to charge one price for its services and then secretly charging them something else, according to Acting US Attorney William Weinre.

The US federal government investigated the company in a scheme to defraud six of the bank’s clients through secret commissions applied to billions of dollars of securities trades, the release explained.

The State Street company assists clients in moving their investments among assets managers or liquidate large investment portfolios, the release noted.

The company also offered to pay an additoinal $32.3 million as a civil penalty to the US Securities and Exchange Commission, the release noted. The combined penalties paid by State Street to both US agencies amounts to more than $64 million.

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