SEC Charges Former CEO with Deceiving Customers about Trading Fees

The SEC charged the former CEO of a ConvergEx Group subsidiary with deceiving brokerage customers with hidden fees to buy and sell securities.

The SEC found that the hidden dealer "trading profits" were in addition to and, often, much higher than the agency commissions paid by customers to have their orders executed. The SEC stated that, in trying to conceal the additional fees, the former CEO engaged in deceptive practices by sending misleading statements and authorizing employees to falsify trading data for customers who inquired about the details of their securities transactions.

See: SEC Complaint.