ConvergEx Undisclosed and Unauthorized Fees

Fletcher v. ConvergEx Group LLC, Case No. 1:13-cv-09150
United States District Court for Southern District of New York

Case Overview

In this lawsuit filed by Keller Rohrback and Co-Counsel, Plaintiffs allege that Defendants participated in a double-charging scheme while providing transition management and brokerage services to Employee Retirement Income Security Act (“ERISA”) employee benefit plans.

Plaintiffs allege that Defendants perpetrated the scheme by receiving both the disclosed commissions and additional undisclosed and unauthorized fees that often exceeded the disclosed commissions received from the ERISA plans that used their services. In doing so, the Defendants’ conduct violated ERISA fiduciary duties. It is further alleged that Defendants developed various strategies to prevent their customers from discovering their scheme or the true amount of fees they collected.

Both the Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) opened investigations into the double-charging scheme, with the SEC settling civil charge with Defendants in December 2013.

Case Documents

Class Action Complaint — 12/27/13

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