Defendant Name: G-Trade Services LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Bank of New York Mellon Corporation
SIC Code: 6022
CUSIP: 06405810

Initial Case Details

Legal Case Name In the Matter of G-Trade Services LLC, ConvergEx Global Markets Limited, and ConvergEx Execution Solutions LLC
First Document Date 18-Dec-2013
Initial Filing Format Administrative Action
File Number 3-15654
Allegation Type Broker Dealer

Violations Alleged

Exchange Act
Sec 10(b) + Rule 10b-5
Sec 15(c)

Resolutions

First Resolution Date 18-Dec-2013

Related Documents:

34-71128 18-Dec-2013 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On December 18, 2013, the SEC instituted settled administrative and cease-and-desist proceedings against G-Trade Services LLC, ConvergEx Global Markets Limited, and ConvergEx Execution Solutions LLC. According to the SEC: "These proceedings arise out of a fraudulent scheme to conceal Respondents' practice of unnecessarily routing certain global trading and transition management customer orders to an offshore affiliate in order to charge undisclosed mark-ups and mark-downs in addition to disclosed commissions on those orders."
2013-266 18-Dec-2013 Press Release--Administrative Proceeding
SEC Charges ConvergEx Subsidiaries With Fraud for Deceiving Customers About Commissions
On December 18, 2013, the SEC announced "fraud charges against three brokerage subsidiaries and two former employees of a global trading services provider that caused many institutional clients to pay substantially higher amounts than disclosed for the execution of trading orders."
34-71558 18-Feb-2014 Administrative Proceeding
Extension Order
On February 18, 2014, the Commission granted the Division of Enforcement's request for a 60-day extension of time until April 21, 2014 to submit a Proposed Plan of Distribution for the Fair Fund.
34-72146 09-May-2014 Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
On May 9, 2014, the SEC gave notice that the Division of Enforcement submitted to the Commission "a proposed plan for the distribution of monies placed into a Fair Fund" established for the matter. According to the SEC: "The Fair Fund is comprised of the amounts of disgorgement, prejudgment interest, and civil monetary penalty paid by Respondents, plus any accumulated interest. The Plan provides for the refund of a portion of the trading profits taken from Respondents' customers between October 2, 2006 and December 31, 2011".
34-72146-ppd 09-May-2014 Administrative Proceeding
Proposed Plan of Distribution
According to the SEC's Proposed Plan of Distribution: "The purpose of this distribution is to refund a portion of the [trading profits] taken from Respondents' customers between October 2, 2006 and December 31, 2011 (the 'relevant period'). The proposed distribution methodology ... provides full refunds of [trading profits] for orders placed during the relevant period in U.S. securities and pro rata refunds of [trading profits] for orders in non-U.S. securities."
34-72487 27-Jun-2014 Administrative Proceeding
Extension Order
On June 27, 2014, the Commission granted the Division of Enforcement's request for an extension of time until August 8, 2014 for entry of an order approving or disapproving the Proposed Plan of Distribution that was noticed for public comment on May 9, 2014.
34-72800 08-Aug-2014 Administrative Proceeding
Extension Order
On August 8, 2014, the Commission granted the Division of Enforcement's request for a second extension of time until December 8, 2014 for entry of an order approving or disapproving the Proposed Plan of Distribution that was noticed for public comment on May 9, 2014. The Division of Enforcement stated that, "additional time is needed to evaluate and respond to the four comments received."
34-73795 09-Dec-2014 Administrative Proceeding
Extension Order
On December 9, 2014, the Commission granted the Division of Enforcement's request for a third extension of time until March 27, 2015 for entry of an order approving or disapproving the Proposed Plan of Distribution that was noticed for public comment on May 9, 2014. The Division of Enforcement stated that "additional time is needed to evaluate the four comments received and prepare responsive recommendations for the Proposed Plan of Distribution."
34-73865 17-Dec-2014 Administrative Proceeding
Order Appointing Fund Plan Administrator and Setting Administrator Bond Amount
On December 17, 2014, the SEC ordered the appointment of The Garden City Group as the fund plan administrator and set the administrator's bond at $108,653,021.
34-74614 31-Mar-2015 Administrative Proceeding
Extension Order
On March 31, 2015, the Commission granted the Division of Enforcement's request for a fourth extension of time until May 26, 2015 for entry of an order approving or disapproving the Proposed Plan of Distribution that was noticed for public comment on May 9, 2014. The Division of Enforcement stated that "additional time is needed to evaluate the five comments received and prepare responsive recommendations for the Proposed Plan of Distribution."
34-75519 24-Jul-2015 Administrative Proceeding
Order Approving a Plan of Distribution
On July 24, 2015, the SEC approved the Plan of Distribution for the Fair Fund in the matter. As of April 30, 2015, all payments have been made and placed into the escrow account for the Fair Fund, totaling $109,440,085.58.
34-75519-dp 24-Jul-2015 Administrative Proceeding
Plan of Distribution
With respect to the Plan of Distribution, the SEC stated: "The purpose of this distribution is to refund a port of the [trading profits] taken on orders placed by Respondents' Direct Customers between October 2, 2006 and December 31, 2011 (the 'Relevant Period'). The proposed distribution methodology ... provides full refunds of [trading profits] for orders placed during the Relevant Period in U.S. securities and pro rata refunds of [trading profits] for orders in non-U.S securities."
34-79235 03-Nov-2016 Administrative Proceeding
Order Directing Disbursement of Fair Fund
On November 3, 2016, the SEC issued an Order directing the disbursement of "$63,479,137.82 of the Fair Fund from the JPMorgan Escrow Account to the Fund Administrator's account at Citibank, N.A," and the distribution of "such monies to eligible customers as provided for in the Plan."
34-80078 22-Feb-2017 Administrative Proceeding
Order Directing Second Disbursement Of Fair Fund
On February 22, 2017 the SEC instituted an order directing a second disbursement of the Fair Fund pursuant to the Plan of Distribution approved on July 24, 2015. According to the SEC: "the Commission staff shall disburse $5,615,131.58 of the Fair Fund from the JP Morgan Escrow Account to the Fund Administrator’s account at Citibank,N.A., and that the Fund Administrator shall distribute such monies to investors as provided for in the Plan."
34-80232 13-Mar-2017 Administrative Proceeding
Order Directing Third Disbursement of Fair Fund
On March 13, 2017 the SEC instituted an Order directing the third disbursement of the fair fund in accordance to the Plan of Distribution approved on July 24, 2015. Following the first tranche distribution on November 23, 2016 and the second on February 22, 2017, the SEC stated in the present order that the "staff shall disburse $1,925,301.67 of the Fair Fund from the JPMorgan Escrow Account to the Fund Administrator's account at Citibank, N.A., and that the Fund Administrator shall distribute such monies to investors as provided for in the Plan."
34-81571 11-Sep-2017 Administrative Proceeding
Order Directing Fourth Disbursement of Fair Fund
"Accordingly, it is hereby ORDERED, that Commission staff shall disburse $8,954,411.01 of the Fair Fund from the JPMorgan Escrow Account to the Fund Administrator's account at Citibank, N.A., and that the Fund Administrator shall distribute such monies to investors as provided for in the Plan."
34-81695 25-Sep-2017 Administrative Proceeding
Order Directing Fifth Disbursement Of Fair Fund
According to the SEC: "it is hereby ORDERED, that Commission staff shall disburse $681,809.94 of the Fair Fund from the JPMorgan Escrow Account to the Fund Administrator's account at Citibank, N.A., and that the Fund Administrator shall distribute such monies to investors as provided for in the Plan."
34-87123 26-Sep-2019 Administrative Proceeding
Order Directing Sixth Disbursement of Fair Fund
The Commission stated: "[I]t is hereby ORDERED, that: A. The Commission staff shall disburse all of the remaining Fair Fund from the JPMorgan Escrow Account, in the approximate amount of $30,044,647.78, to the Fund Administrator's account at Citibank, N.A.; and B. The Fund Administrator shall then distribute a total of $31,110,431 to investors as provided for in the Plan."

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