Fidelity's Lynch Took $16,000 Worth Of Freebies
In a case that could sully the reputation of legendary Fidelity Investments fund manager Peter Lynch, regulators said Wednesday that he had improperly accepted almost $16,000 worth of free sports, concert and theater tickets from brokers seeking the mutual fund giant's business.
Lynch, the former star manager of Fidelity's flagship Magellan fund and now an executive at the firm, got passes to Ryder Cup golf tournaments and concerts by rock band U2, according to the Securities and Exchange Commission. Lynch also accepted tickets to Boston Red Sox baseball games and to stage productions of "The Nutcracker" and "The Lion King," said his spokesman, Doug Bailey.
The allegations against Lynch were revealed in legal settlements that the SEC reached with Fidelity and several current and former employees. The SEC said Fidelity employees received more than $1.6 million in travel, entertainment and other gifts from brokers seeking to handle the fund company's mammoth stock-trading business.