- Associated Press - Tuesday, April 5, 2016

BOSTON (AP) - The Latest on the indictment of two former State Street Corp. executives on securities fraud charges (all times local):

3:00 p.m.

A former State Street Corp. executive has pleaded not guilty in a scheme to defraud clients through secret commissions on securities trades.

Ross McLellan, a former executive vice president at the Boston financial services giant, was arraigned in federal court Tuesday on charges of securities fraud, wire fraud and conspiracy. McLellan was released and is due in court again on May 19.

An indictment accuses McLellan and another former executive, Edward Pennings, of defrauding clients, including an Irish government pension fund, a British government pension fund and a Middle Eastern Sovereign Wealth Fund.

McLellan’s lawyer said his client did not commit a crime and called the indictment “an overreaction to past failure to control practices on Wall Street.”

12:30 p.m.

Two former State Street Corp. executives have been charged in a scheme to defraud at least six clients through secret commissions applied to billions of dollars in securities trades.

Ross McLellan and Edward Pennings were charged with securities fraud, wire fraud and conspiracy. McLellan was an executive vice president and Pennings was a senior managing director at State Street.

The indictment says an Irish government pension fund and a British government pension fund were among the defrauded clients.

McLellan is scheduled to appear in federal court in Boston Tuesday. Prosecutors said Pennings is believed to be living overseas.

McLellan’s lawyer said his client didn’t commit a crime and called the indictment “an overreaction to past failures to control practices on Wall Street.”

A lawyer for Pennings couldn’t immediately be identified.

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