The Securities and Exchange Commission protects clients of investment advisors, brokerage companies, hedge funds and investment banks from overbilling by their agents and fiduciaries. Over the past few years, the SEC has brought a number of enforcement actions against organizations in the financial industry for misleading or hidden fees charged to their clients. If you are a client or insider that has evidence of improper fees charged, contact our SEC whistleblower lawyers for a free, confidential initial consultation at 1-800-590-4116.
Types of Potential Cases:
There have been a number of recent enforcement actions involving billing errors, hidden fees, and misleading charges for customers, investors and clients. Among them are:
Inaccurate Billing Rates – Citigroup paid appx. $18 million for failing to confirm the accuracy of billing rates entered into the computer with the client contracts. At least 60,000 clients were overcharged a total of $18 million as a result. The billing errors occurred over a 15 year period.
Forex Markups – State Street agreed to pay the SEC $167.4 million in disgorgement and penalties for charging standard, uniform predetermined rates to custody clients engaged in foreign currency exchange trades when it told some clients that it guaranteed the most competitive rates. It told other clients that they would receive best execution when it made no efforts to do so.
Monitoring Fees – Blackstone paid $39 million in fines in 2015 for failure to transparently disclose accelerated monitoring rates to private equity investors. The accelerated monitoring rates kicked before the sale or IPO of fund-owned portfolio companies.
The SEC has brought several enforcement actions against financial institutions over these issues in the past few years. If have evidence of a hedge fund, brokerage company, or investment bank engaged in improper billing of clients, whether through hidden, misleading or simply inaccurate fees, call 1-800-590-4116 to speak to one of our SEC whistleblower lawyers.