State Street Bank agrees to settle investor fraud charges for additional $300 million
The Boston-based State Street Bank and Trust Company was charged by the Securities and Exchange Commission with misleading its investors about their exposure to subprime investments while selectively disclosing more complete information to specific investors.
The State Street Bank agreed to pay over $300 million to settle the securities fraud charges. Investors that lost money during the subprime market meltdown in 2007, may be entitled to these funds. This payment is in addition to nearly $350 million that State Street previously agreed to pay to investors in State Street funds to settle private claims.
According to Robert Khuzami, Director of the SEC's Division of Enforcement,
"Investigating potential securities law violations arising out of the credit crisis remains a high priority for the SEC Enforcement Division."
State Street also was ordered to cease and desist from any further violations of certain securities laws. The SEC's enforcement action took into account the company's remediation and its cooperation, including:
* Replacement of key senior personnel and portfolio managers.
* Conducting a review of its procedures and revised its risk controls.
* Entering into private settlements with harmed investors.
* Recent agreement — pursuant to a limited privilege waiver — to provide information it was not otherwise obligated to provide to enable the SEC to assess the potential liability of individuals with respect to certain investor communications.
Click on the following lnk to read more on the State Street Investor settlement of $300 million
SEC order and settlement against State Street Bank and Trust Company
Brian F. LaBovick, Esq.
Esther Uria LaBovick, Esq.
Mark R. Hanson, Esq.
Scott R. Haft, Esq.
Joseph R. Fields Jr., Esq.
Marcie Dodson, J.D.