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Former ConvergEx CEO Blumberg Pleads Guilty to Securities Scheme
A former top executive at ConvergEx Global Markets Limited has pleaded guilty to his role in a scheme to commit securities and wire fraud. Anthony Blumberg, 53, of Short Hills, New Jersey, admitted to orchestrating the scam from 2006 through 2011.
According to court documents, Blumberg and his co-conspirators at ConvergEx Group, a global trading services firm, executed orders for clients while adding a ‘spread’ to the prices of securities. The ‘spread’ was a mark-down on the sale of a security or a mark-up on the purchase of a security. To conceal the practice, they sent false reports to clients.
Blumberg and his team sent ‘batch fills’ that hid the actual information clients sought. This allowed them to violate client instructions and provide false transactional data. The scheme involved ConvergEx Group’s subsidiaries, including G-Trade Services LLC and ConvergEx Limited.
This is not the first time ConvergEx Group has been involved in a scandal. In 2013, the company pleaded guilty to conspiracy to commit securities and wire fraud and paid $43.8 million in criminal penalties and restitution. Three other individuals have also pleaded guilty as a result of the investigation.
The case was investigated by the FBI’s Washington Field Office and the U.S. Postal Inspection Service. It is being prosecuted by the U.S. Attorney’s Office for the District of New Jersey, in collaboration with the Justice Department’s Criminal Division.
Blumberg is scheduled to be sentenced on December 5. The guilty plea marks a significant blow to ConvergEx Group, which has faced several high-profile scandals in recent years.
Assistant Attorney General Brian A. Benczkowski, U.S. Attorney Craig Carpenito, and other officials announced the plea, praising the work of investigators and prosecutors in bringing the case to a close.
Key Facts
- State: New Jersey
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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