Ex-State Street Executive Found Guilty of Fraud Ross McLellan has been found guilty of five out of six counts of fraud for misleading institutional clients. Alicia McElhaney June 26, 2018 the juryfound McLellan guilty of five of six counts of wire fraud, securities fraud and conspiracy to commit those crimes almost seven years after he, along with other members of the bank’s transition management team, agreed to mislead institutional clients about the services they were paying for. The news comes after roughly three weeks of trial. Closing arguments were held on Monday in Boston. McLellan’s sentencing has been scheduled by U.S. District Judge Leo Sorokin for October 10. [II Deep Dive:Former State Street Exec Heads to Trial] TDFs Can Help Investors Wade Through Choppy Markets[/paste:font] McLellan, once an executive vice president at State Street, is the latest in a string of former executives held responsible for the fraud. Two of his former employees, Edward Penningsand Richard Boumgaardt, earlier pleaded guilty to conspiring to commit wire fraud and securities fraud. The group allegedly secretly charged commissions on trades, then did what they could to hide the fact from clients. Those affected by the scheme include the United Kingdom’s Royal Mail Pension Plan, the Kuwait Investment Authority, and Ireland’s National Pension Reserve Fund. In 2017, State Street was hit with a $64.6 million fine, which the company paid in full to the Department of Justice and the Securities and Exchange Commission for the scheme. The company has disclosed the issue in public filings since 2012. McLellan and Pennings left State Street in 2011. McLellan was arrested in 2016 at his Hingham, Massachusetts home. https://www.institutionalinvestor.c...-State Street Executive Found Guilty of Fraud