SEC settled charges that Lazard failed to supervise three employees who collectively spent more than $600K while entertaining Fidelity traders. SEC also charged three employees and a supervisor for roles in securities laws violations by Fidelity traders. Earlier this year, the SEC charged Fidelity and employees for improperly accepting lavish gifts provided by brokers.
SEC found that former head of Lazard’s U.S. sales and trading and former RRs took trips to such destinations as Europe, Bahamas, Caribbean, Fla, and Napa Valley, CA, often by private plane, and paying for meals and lodging at high-end restaurants and hotels. According to SEC, Fidelity's head Trader Bruderman was provided with race car driving lessons, adult entertainment* and expensive wine, and that approximately $50K was contributed toward his bachelor party.
The Commission found failure to supervise at Lazard who agreed to pay $1,817,629 plus interest of $429,379.04, and penalty of $600K. More at Securities Law Prof Blog
*Blog on Bruderman Party and "typical debauchery"
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