UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 87123 / September 26, 2019

ADMINISTRATIVE PROCEEDING 

File No. 3-15654

____________________________________

 :

In the Matter of :

 :

G-TRADE SERVICES LLC, : ORDER DIRECTING SIXTH

CONVERGEX GLOBAL MARKETS : DISBURSEMENT OF FAIR FUND

LIMITED, and CONVERGEX :

EXECUTION SOLUTIONS LLC :

:

Respondents. :

____________________________________:

On July 24, 2015, the Commission approved the Plan of Distribution (“Plan”)1for the 

above-captioned matter. The Plan provides for the distribution of $109,436,318.00, plus 

interest, to harmed customers according to the methodology set forth in the Plan. 

Pursuant to an order entered on November 23, 2016,2the Commission disbursed 

$63,479,137.82 for a first tranche distribution to 200 Direct Customers and 892 Indirect 

Customers. Pursuant to an order entered on February 22, 2017,3the Commission disbursed 

$5,615,131.58 for a second tranche distribution to 1 Direct Customer and 176 Indirect 

Customers. Pursuant to an order entered March 13, 2017,

4

the Commission disbursed 

$1,925,301.67 for a third tranche distribution to 2 Direct Customers and to 91 Indirect 

Customers. Pursuant to an order entered September 11, 2017,5the Commission disbursed 

$8,954,411.01 for a fourth tranche distribution to 4 Direct Customers and to 78 Indirect 

 

1

 See Order Approving a Plan of Distribution, Exchange Act Rel. No. 75519 (July 24, 2015).

2

 See Order Directing Disbursement of Fair Fund, Exchange Act Rel. No. 79235 (Nov. 23, 2016).

3

 See Order Directing Second Disbursement of Fair Fund, Exchange Act Rel. No. 80078 (Feb. 22, 2017).

4

 See Order Directing Third Disbursement of Fair Fund, Exchange Act Rel. No. 80232 (Mar. 13, 2017).

5

See Order Directing Fourth Disbursement of Fair Fund, Exchange Act Rel. No. 81571 (Sept. 11, 2017).
2

Customers. Pursuant to an order entered on September 25, 2017,

6

the Commission disbursed 

$681,809.94 for a fifth tranche distribution to 1 Direct Customer and 11 Indirect Customers

(the “Fifth Tranche”). The Secretary has been granted authority to issue future orders to 

disburse amounts from the Fair Fund upon receipt of written certification from the 

Chief/Deputy Chief Litigation Counsel of the Division of Enforcement that s/he has received a 

payment file with distribution payments to Direct and/or Indirect Customers that is validated 

as being in accord with the Plan as authorized by the Commission.

After completion of the Fifth Tranche, as of August 31, 2019, there is a residual 

amount of $31,110,4317left in the Fair Fund after leaving a reserve of $730,984.39 to pay for 

taxes and expenses, plus funds to cover uncashed or reissued checks from prior tranches.

8

The Secretary has now received written certification from the Chief/Deputy Chief 

Litigation Counsel of the Division of Enforcement that s/he has received a conforming 

payment file in the amount of $31,110,431 with distribution payments to 124 direct customers 

and 459 indirect customers.

Accordingly, it is hereby ORDERED, that:

A. The Commission staff shall disburse all of the remaining Fair Fund from the 

JPMorgan Escrow Account, in the approximate amount of $30,044,647.78, to 

the Fund Administrator’s account at Citibank, N.A.; and

 

6

 See Order Directing Fifth Disbursement of Fair Fund, Exchange Act Rel. No. 81695 (Sept. 25, 2017).

7

 This amount includes funds received from two related district court cases. In SEC v. Bassily, Khald Bassily 

(“Bassily”) was ordered to pay a total of $988,366.24 that was to be added to the ConvergEx Fair Fund. See

Final Judgment, Dkt. No. 84, SEC v. Bassily, 16-cv-2733 (S.D.N.Y. 2017). In SEC v. Blumberg, Anthony G. 

Blumberg (“Blumberg”) was ordered to pay a total of $557,300 that was to be added to the ConvergEx Fair 

Fund. Blumberg was ordered to pay these funds by making four installment payments over the course of 210 

days. See Final Judgment, Dkt. No. 85, SEC v. Blumberg, 14-cv-4962 (D.N.J. 2019). Pursuant to their 

respective Final Judgments, Bassily has paid in full and to date, Blumberg has paid $276,344.68. In accordance 

with district court orders, a total of $1,300,920.89 was transferred from their respective accounts to the Fair Fund 

account at Citibank. The total includes accrued interest minus taxes and fees

8

 The bulk of the Fair Fund, approximately $30,044,647.78 is at JPMorgan Escrow Account, which is still 

accruing interest. The funds in the Fund Administrator’s account at Citibank total approximately $1,796,767.61.
3

B. The Fund Administrator shall then distribute a total of $31,110,431 to investors 

as provided for in the Plan. 

By the Commission. 

Vanessa A. Countryman

Secretary