California charges State Street with fraud

SACRAMENTO, Oct. 20 (UPI) -- California has filed suit accusing State Street Bank and Trust of overcharging state employee pension funds $50 million since 2001, officials said Tuesday.

"Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California's public pension funds," California Attorney General Jerry Brown said.

The suit alleges the bank, based in Boston, overcharged the California Public Employees Retirement System and the California State Teachers Retirement System for foreign currency trades since 2001, The Wall Street Journal reported.

Brown called the overcharges "the latest example of how clever financial traders violate laws and rip off the public trust."

Hannah Grove, a spokeswoman for the bank, said "we categorically deny any allegations of wrong-doing and will defend ourselves against any litigation," the Journal reported.