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(Reuters) - A former State Street Corp (STT.N) executive pleaded guilty on Wednesday in connection with what U.S. prosecutors said was a scheme to defraud six clients through secret commissions on billions of dollars worth of trades.
Edward Pennings, a former senior managing director in State Street's London office, pleaded guilty in federal court in Boston to one count of conspiring to commit wire fraud and securities fraud, prosecutors said.
Pennings is one of three former State Street executives to face U.S. charges in connection with the probe. The Boston-based bank in January to agree to pay $64.6 million to resolve related U.S. criminal and civil investigations.
A lawyer for Pennings, who lives in Britain, did not immediately respond to a request for comment.
A second former executive, Richard Boomgaardt, who lives in Britain and was head of State Street's transition management desk for Europe, the Middle East and Africa, is expected to plead guilty on July 12, according to court records.
The case followed a 2014 settlement between State Street and the UK Financial Conduct Authority in which the bank paid a fine of 22.9 million pounds, or $38 million at the time, for charging the six clients mark-ups on certain transactions.
From 2010 to 2011, Pennings, Boomgaardt and Ross McLellan - a former executive vice president at the bank - conspired to add the secret commissions to fixed-income and equity trades performed for certain clients, prosecutors said.
The clients were using a State Street unit that helps institutional customers move investments between asset managers or liquidate large investment portfolios, prosecutors said.
McLellan has pleaded not guilty to securities fraud and wire fraud charges. His trial is scheduled for October.
The cases in U.S. District Court, District of Massachusetts, are U.S. v. McLellan, et al, No. 16-cr-10094, and U.S. v. Boomgaardt, No. 17-cr-10167.
Reporting by Nate Raymond in New York, editing by G Crosse