According to settlement papers, the Boston-based company admitted that from 1998 to 2015, its executives defrauded customers of more than $290 million through a scheme to add hidden markups to “out-of-pocket” expenses that were charged.
The Justice Department said executives also tried to conceal the markups, including by leaving the details off invoices and misleading customers who asked why the charges were imposed.
State Street’s settlement resolves a criminal charge of wire fraud conspiracy, and requires the company to retain an independent compliance monitor for two years.
The Justice Department said the settlement reflects State Street’s cooperation and agreement to reimburse victims fully.
State Street did not immediately respond to requests for comment.
