"8 cited in Fidelity case will pay $1m; SEC: Gifts violate investors' trust" by Ross Kerber, Globe Staff | December 12, 2008
Eight current and former Fidelity Investments employees will pay more than $1 million to settle federal charges they improperly received gifts from brokers seeking the Boston mutual fund company's vast trading business, the Securities and Exchange Commission said yesterday.
They are among a group of 13 current and former employees charged with wrongdoing by the agency earlier this year for accepting $1.6 million worth of gifts and entertainment - free plane rides, golf outings, concert tickets - in violation of federal rules limiting such gifts. All but two of the 13 have now settled.
Fidelity itself agreed in March to an $8 million settlement with regulators. The family-controlled firm did not admit or deny wrongdoing, but was put in the rare position of explaining a breakdown in oversight and supervision to its fund shareholders. Prompted by fund trustees, Fidelity separately agreed to repay fund shareholders $42 million for potential trading-related losses.
None of the eight yesterday admitted or denied the SEC's findings, the agency said in a statement....
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