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 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.