The Securities and Exchange Commission has filed an order against a top advisor at Fidelity Investments, after a four-year investigation into the inappropriate use of gifts and the entertainment of prospective clients.

 

Peter Lynch, vice chairman and director of Fidelity parent company FMR, is accused of using traders on Fidelity’s equity desk to score tickets to expensive and often sold-out events, including a U2 rock concert and the Ryder Cup tournament.

 

The SEC alleges Lynch took 61 tickets for 12 different events at a cost of $15,948. Lynch agreed to pay the amount, plus $4,183 in interest, without admitting or denying wrongdoing, and agreed to cease and desist from such conduct in the future.

 

“Since retiring from investment management over 17 years ago, I have not placed any trades on behalf of Fidelity with any brokerage firm,” Lynch said in a statement. “In asking the Fidelity equity trading desk for occasional help locating tickets, I never intended to do anything inappropriate, and I regret having made those requests.”

 

Fidelity said it will pay an $8 million civil penalty and that Lynch’s behavior is not indicative of the ethical standard of the company.

 

“It’s important to note that the order makes no note of financial harm done to shareholders,” said Fidelity spokeswoman Anne Crowley in an interview with Dow Jones News Service.

 

The staff of Money Management Executive ("MME") 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 MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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