SEC Sues Ex-Fidelity Trader, Accomplice For Fraud

Law360, New York (April 17, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is suing a former equity trader at Fidelity and his colleague, a broker at Capital Institutional Services Inc., alleging the two defrauded Fidelity and its advisory clients.

The civil complaint, filed Wednesday in the U.S. District Court for the District of Massachusetts, alleges that David K. Donovan, Jr. accessed confidential trading information related to Fidelity's advisory clients and mutual fund purchases and had David R. Hinkle purchase the stock first, subsequently selling the stock for profit.

Donovan allegedly tapped into...
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