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[posting]25720168[/posting]Hallo liebe Covad-Gemeinde, Es gab mal wieder was interessantes, was Covad nur indirekt betrifft. Ein Fidelity-Manager hat Insidertips privat verwertet. Er hat über seine Mutter Covadaktien kaufen lassen. Hier im Originaltext: FUNDWATCH Court documents detail Fidelity probe Former trader, family members may have profited from improper trades PrintE-mailDisable live quotesRSSDigg itDel.icio.usRelated Blog Posts & ArticlesBy John Spence, MarketWatch Last Update: 2:06 PM ET Dec 1, 2006 (Corrects to reflect Richard E. Nicolazzo is a spokesman representing Donovan, not his lawyer.) BOSTON (MarketWatch) -- Federal regulators say that a former trader at Fidelity Investments or his parents may have improperly benefited from knowledge of the company's planned stock purchases, according to court papers filed this week. The documents for a legal proceeding by the Securities and Exchange Commission included a previously nonpublic order from March 2005 that was part of a court filing involving ex-trader David K. Donovan Jr., and whether he or his family members illegally made money trading in stocks Fidelity was purchasing. As a result, Fidelity customers may not have gotten the best price on stock trades. The story was initially reported Friday by the Boston Globe. Fidelity spokeswoman Anne Crowley said in a telephone interview Friday that the documents referenced in the Globe story are nearly two years old, and that the Donovan case is unconnected to a probe into gifts received by Fidelity traders. She added that Fidelity first became aware of Donovan's activities during an internal review in 2005 and brought the matter to the attention of regulators, who subsequently investigated. "We do not tolerate illegal or unethical behavior in any circumstances," Crowley said. This week's court filings make no allegations or formal charges against Fidelity, Donovan or his family. Richard E. Nicolazzo, a spokesman representing Donovan, said that during Donovan's tenure as a trader at Fidelity, he never took any actions that violated company policies and procedures, and that he was consistently recognized as one of its top-performing traders. "[Donovan] intends to fully cooperate with regulators and remains confident that when the inquiries are completed he will be vindicated," according to Nicolazzo. Paper trail In the court documents obtained by MarketWatch, filed in the U.S. District Court of Massachusetts, the SEC asked the court for an order to show cause why Donovan's parents should not comply with an administrative subpoena for documents and testimony. Donovan worked within FMR Co., an adviser to Fidelity's mutual funds and other institutional clients, according to the documents. In the summer of 2003, Fidelity purchased and intended to continue buying shares of Covad Communications Group Inc. (DVW : covad communications group i com News , chart, profile, more Last: 1.20-0.01-0.83% 4:38pm 12/01/2006 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: DVW1.20, -0.01, -0.8%) , the SEC said. Donovan accessed information about Covad stock in FMR Co.'s internal trade database on about 44 occasions during a one-month period, and in early August 2003 he placed at least four phone calls to his parents, the regulator indicated. Within 15 minutes of those calls, trades in Covad shares were placed in a brokerage account in the name of Donovan's mother, Concetta, according to the court documents. When the shares were sold in September 2003, the brokerage account posted a profit of nearly $90,000, according to the SEC. In testimony to the SEC, Donovan, the former trader, said that he had discussed Covad with his mother and that "he could not say with 100% certainty that he did not advise his mother or father about FMR Co.'s pending orders in Covad for its advisory clients." Donavan's father testified the first he heard of Covad was when he received a subpoena from the SEC staff in 2005, according to documents. A lawyer representing Donovan's parents, Valerie S. Carter, has declined SEC requests to interview Concetta Donovan, due to pain and complications related to neck surgery in 2005 and medication that affected her ability to clearly testify, the SEC said. Carter did not immediately return a message for comment. In 2004, Boston-based Fidelity disciplined 14 employees after an internal investigation of policies and procedures regarding gifts, gratuities and business entertainment. Regulators had been looking into gifts received by employees in exchange for allegedly steering lucrative trading business to brokers who handled Fidelity's trades. Crowley, the firm's spokeswoman, said that privately held Fidelity disciplined more traders in 2005, and added that the SEC gift probe is ongoing. ------------------------------------------------------------------ |
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| aus der Diskussion: | langsam wird es peinlich, seit 19.10. jeden Tag +20% ! Covad Communications ! |
| Autor (Datum des Eintrages): | CovadFan (02.12.06 00:21:55) |
| Beitrag: | 618 von 705 (ID:25876612) |
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