The investigation into inappropriate gifts from brokers to Fidelity Investments traders, potentially influencing their directed-brokerage decisions, has reached the upper echelons of the Boston fund giant, The Wall Street Journal reported Monday.Investigators at the Securities and Exchange Commission are now joining ongoing grand jury and Justice Department probes into gifts from unnamed brokerage firms, people familiar with the situation have told the Journal.
Under the spotlight now, are Fidelity Chairman and CEO Edward C. Johnson III and his wife for reportedly accepting tickets to a figure-skating competition at the 2002 Olympic Games in Salt Lake City. Top-shelf tickets to such games can run as high as $400 apiece. In addition, the Johnsons' daughter and Fidelity heir apparent, Abigail Johnson, is said to have "asked traders . . . to get tickets from brokers who do business with Fidelity," according to the WSJ.