ITG Drops CEO Gasser In Wake of Dark Pool Fine

The troubled broker-dealer has named E-Trade veteran Jared Lilien as interim CEO in the wake of a dark pool scandal that could cost the broker $20.3 million

Broker-dealer ITG announced that it has replaced Chief ExecutiveBob Gasserwith board member andE*Trade FinancialCorp.veteranJarrett Lilien. This follows news that broke last week that ITG may pay a dark-pool settlement with the Securities and Exchange Commission for more than $20 million.

We are very pleased that Jarrett has agreed to serve as interim CEO, while we consider our options for a permanent CEO. With Jarrett and the remainder of the executive team we are in capable hands as we seek to ensure a smooth management transition, saidMaureen OHara,chairwoman of ITGs board. Lilien was chief operating officer and president at E*Trade.

ITG also announced that Associate General Counsel Anglique DeSanto has been named General Counsel.

According to the Wall Street Journal, “The SEC investigated ITG for alleged violations of customer-information controls and internal policies that took place during a pilot program run by broker-dealer subsidiary AlterNet Securities Inc. in 2010 and 2011, the firm said, as well as a lack of client disclosures about the program.”

In a press statement, OHara stated that the potential settlement with the SEC in “in process.”She added, The board of directors, with the assistance of outside counsel, concluded its independent review of the SEC matter at the end of last week.We hope to expeditiously finalize the settlement and to work with our customers, shareholders and employees to restore confidence in our company and its capabilities.

That said, ITG’s second quarter 2015 earnings and earnings call will be “accelerated.” ITG will issue a press release with final second quarter results after the market close today Monday, August 3, 2015. The broker says it will provide more details during an earnings call tomorrow Tuesday, August 4, 2015, at 8:30 am ET.