A former Fidelity trader was sentenced to 30 months in prison for conspiracy and wire fraud that led to a $2.39 million loss of the No. 1 U.S. mutual fund firm, as well as obstructing a Securities and Exchange Commission investigation, Reuters reports.

Richard Callipari worked for Boston-based Fidelity until April 1997, and started working for New York-based JAS Securities later that year. While with JAS, Callipari asked a former colleague, who was still working for Fidelity, to trade in index options on the Chicago Board of Options Exchange for Callipari’s JAS account, even though JAS didn’t have an account with Fidelity. The trading gained $500,000 in profits at first, of which Callipari took nearly half, but later it lost $2.39 million. Callipari denied that he authorized the trades, leaving Fidelity with the losses.

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The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.

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