State Street Corp. agreed to pay $64.6 million, cooperate in the U.S. prosecution of former executives, and appoint a compliance monitor to settle DOJ and SEC charges that it overcharged 6 clients in Europe, Africa and the Middle East. The Justice Department claims that State Street defrauded clients by secretly applying commissions to billions of dollars in securities trades.

Cooperating With ‘Best Efforts’.    As part of the settlement agreement, State Street will cooperate with the U.S. prosecution by providing “best efforts” to make current and former employees available for interviews or testimony in U.S. grand juries or trials, and with foreign or domestic regulatory or law-enforcement authorities.

In April, prosecutors announced charges against 2 former executives - Ross McLellan and Edward Pennings – who are accused of conspiring from February 2010 to September 2011 to place commissions on fixed-income and equity trades for 6 clients of the bank’s transition management business. That unit helped institutional clients move investments among asset managers and liquidate large portfolios.

McLellan and Pennings have pleaded not guilty and are scheduled to go to trial on 10/23/17.

Fines to be Paid.    The $64.6 million fine will be split between the DOJ and the SEC. State Street had faced a fine ranging from $78Mn to $156Mn, but received credit for its “extensive remedial measures,” enhancing controls in its transition management business, and setting up an Office of Culture, Controls and Governance in the U.K. In 2014, the bank paid a penalty of $28 million to the U.K.’s Financial Conduct Authority.