ConvergEx to pay more than $150 mln to settle U.S. fraud charges

12/18/2013

WASHINGTON, Dec 18 (Reuters) - Three units of the brokerage ConvergEx will pay more than $150 million to settle criminal and civil charges that they lied about costs and overcharged certain institutional clients, U.S. authorities announced on Wednesday.

The U.S. Securities and Exchange Commission said the company will pay more than $107 million and admit to wrongdoing as a condition of the civil settlement.

In addition, the Justice Department announced that ConvergEx Group LLC will also pay $43.8 million in criminal penalties and restitution.

In addition, the SEC and the Department of Justice said two former employees of the company, Jonathan Daspin and Thomas Lekargeren, were charged for criminal and civil violations.

Both men pleaded guilty to the criminal charges and settled the SEC's charges.



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