The US Securities and Exchange Commission (SEC) has filed a lawsuit on Tuesday against Khaled 'Kal' Bassily, former Executive of ConvergEx Group. The regulator has accused him of fraudulently reaping millions of dollars for his previous employer and himself through charging illegal pseudo-markups on customers' securities trades.

Bassily is a Manhattan resident, possessing a business degree from Columbia University. He has allegedly misled customers including charities, religious organizations and retirement funds, regarding their trading costs.

The former ConvergEx exec is also accused of coaching traders on the amount of hidden charge, internally known as 'trading profits'. Traders have been able to collect the hidden profit without customer noticing, reports Reuters citing the SEC complaints filed with the federal court in Manhattan, as the source.

The secret scheme has been conducted for the period of October, 2006 to December, 2011. During this period, Basilly has been directly enriched through collecting millions of dollars in bonuses.

The former exec has conducted the fraud while serving ConvergEx Execution Solutions LLC as the head of its global transition management unit. He has been fired in September, 2013, according to a report published in CNBC.

ConvergeEx has admitted wrongdoing through its various units and agreed to pay $150 million penalty to settle US criminal and civil probe, three months after its initiation. Notably mentioning the Manhattan based private company provides brokerage and trading related services for institutional investors.

However, Bassily's lawyer claims in a statement that his client has acted in good faith following ConvergEx's approved business model. He, on behalf of his client, has vowed to vigorously defend against the brought charges while looking forward towards the former exec's day in the court, reports Financial Advisor Magazine citing the lawyer's statement as the source.

Financial Industry Regulatory records suggest, Bassily has been fired because of concerns over maintaining certain secret communications with clients and transactions prior to 2012. The stock exchange regulator has sought recoup of ill gotten profits, impose civil fines while obtaining other relieves through the lawsuit from Basilly.

ConvergEx hasn't been accused as a defendant in the lawsuit filed against Bassily and has declined to comment on sub-judicial matter. An SEC spokeswoman has also expressed her inability in making additional comments. Details of the SEC vs Basilly case are available with the US District Court for the Southern District of New York under suuit no. 16-02733.

Khaled 'Kal' Basilly, a business graduate from Columbia University has been fired from his exec position in ConvergEx in September, 2013. He has been accused of maintaining secret communications with the clients. Several years after his dismissal, the former exec has been sued on Tuesday by the US SEC for his fraudulent role during the period from October, 2006 to December, 2011.