Violation Tracker Individual Record
Company:
ConvergEx Group LLC
Current Parent Company:
Cowen Inc.
Penalty:
$43,800,000
Year:
2014
Date:
November 19, 2014
Primary Offense:
fraud
Violation Description:
A brokerage subsidiary of ConvergEx Group LLC was ordered to pay a criminal penalty and restitution for wire fraud and conspiracy to commit securities and wire fraud in connection with a scheme to charge clients millions of dollars in unwarranted and hidden fees. CGM Limited and its parent company, which entered into a deferred prosecution agreement on Dec. 18, 2013, were required to pay a criminal penalty of approximately $18.0 million, forfeit approximately $12.8 million, and provide customer restitution of $12.8 million, for a total of $43.8 million.
Level of Government:
federal
Action Type:
agency action
Agency:
Justice Department Criminal Division
Civil or Criminal Case:
criminal
Prosecution Agreement:
plea & deferred prosecution agreement
HQ Country of Parent:
USA
HQ State of Parent:
New York
Ownership Structure of Parent:
publicly traded
Major Industry of Parent:
financial services
Specific Industry of Parent:
investment management and brokerage services
Source of Data:
Source Notes:
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note:
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.
