(HedgeCo.Net) a Federal Court Judge in Boston, Massachusetts, has sentenced Ross McLellan, a former State Street Corp. executive, to 18 months in prison for his role in a scheme to defraud customers of State Street’s Transition Management line of business. McLellan was found guilty of applying hidden commissions to billions of dollars of securities trades for these customers.

The criminal conviction is based on substantially the same conduct alleged in a parallel enforcement action brought by the SEC. The SEC’s complaint against McLellan, which was filed on May 13, 2016 in federal court in Boston, charges McLellan with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and aiding and abetting violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder by others at State Street. The SEC’s litigation is ongoing.