SEC may bring charges against Fidelity's DeSano

August 5, 2005

The U.S. Securities and Exchange Commission has told Scott DeSano, former head stock trader at mutual fund giant Fidelity Investments, that it is considering bringing civil charges against him, according to published reports.

The charges would be in connection with an investigation of suspected lavishing of gifts on Fidelity employees by Wall Street brokers, the Wall Street Journal reported, citing people familiar with the matter.

The Journal said the SEC sent DeSano a Wells notice, which indicates its staff is considering recommending that the commission bring civil charges. A Wells notice gives the recipient a chance to rebut the charges. Fidelity had already disclosed that the firm received a Wells notice.

Boston-based Fidelity reassigned DeSano in July to its strategic new business development group. DeSano, 44, had been Fidelity's head of global equity trading since 1996. He was one of 14 employees disciplined in December following an internal investigation of gift-taking.