Ross McLellan

Litigation Release No. 26034 / June 20, 2024

Securities and Exchange Commission v. Ross McLellan, Civil Action No. 16-cv-10874 (D. Mass. May 13, 2016)

SEC Obtains Final Judgment Against Former State Street Executive

On June 17, 2024, the U.S. District Court for the District of Massachusetts entered a final judgment against Ross McLellan, a former executive of Massachusetts-based State Street Corporation, for engaging in a scheme to defraud certain customers of State Street’s transition management business.

According to the SEC’s complaint, filed on May 13, 2016, McLellan led a scheme to add secret commissions to billions of dollars of securities trades performed for at least six clients of State Street’s transition management business, which helps institutional clients move their investments between asset managers or otherwise restructure large investment portfolios. The SEC alleged that the unauthorized commissions were charged in addition to fees the clients had expressly agreed to pay State Street and that McLellan took steps to conceal the commissions from the clients and others within State Street. In a parallel criminal case, McLellan was convicted in October 2018 after a jury trial and later sentenced to a term of 18 months’ imprisonment for his role in the scheme.

On June 18, 2024, the U.S. District Court for the District of Massachusetts entered a final judgment against McLellan. The judgment enjoins McLellan from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The SEC’s case was handled by Eric Heining, Rua Kelly, Rory Alex, and Paul Block of the Boston Regional Office, with assistance from Mark Gera of the SEC’s Division of Examinations. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation, the United Kingdom’s Financial Conduct Authority, and the City of London Police.

Last Reviewed or Updated: June 20, 2024