Fidelity Pays $8M in SEC Gift Scandal

Investment guru Peter Lynch and Fidelity Investment settled SEC charges brought against them alleging that Lynch used Fidelity traders to procure tickets to high-profile concerts and sporting events. Lynch, vice chairman of Fidelity's parent company, agreed to pay $15,948 for the tickets, plus $4,183 in interest. Fidelity will pay $8 million for nine other charges, reports the Wall Street Journal.

"The tone is set at the top," said an SEC official. "If higher-ups request tickets from a trading desk, it may send a message to the traders that such misconduct is tolerated." Lynch wrote that he "never intended to do anything inappropriate, and I regret having made those requests." The settlement stems from the SEC's four-year probe into inappropriate gifting practices at mutual-fund companies.  (More Fidelity stories.)