Craig Lax, the former chief executive officer of G-Trade Services LLC, a US-registered broker-dealer, agreed to pay disgorgement of US $783,000 for his role in the firm’s overcharging of customers in connection with certain of their equity transactions. According to a complaint filed by the SEC against Lax in a federal court in New Jersey, from at least January 2008 to August 2011, G-Trade engaged in a “fraudulent scheme to conceal from customers a practice of charging hidden mark-ups and mark-downs on securities trades.” This was arranged, claimed the SEC. by G-Trade routing customer securities trades for execution through a subsidiary, ConvergEx Global Markets Limited (CGM), a Bermuda broker-dealer. On occasion, customers of G-Trade ultimately paid both an agreed commission and a hidden mark-up or mark-down assessed by CGM if the traders at CGM “believed they could add a [trading profit] without detection by the customer.” The SEC claimed that Mr. Lax would suspend the taking of trading profits when a customer requested certain detailed information about trading. In addition to paying disgorgement, Mr. Lax agreed to be suspended from the securities industry for at least five years and to cooperate with the SEC going forward; he may be subject to payment of a fine too. Both G-Trade and ConvergEx are wholly-owned subsidiaries of ConvergEx Group, NY-based firm.