Rhode Island court has sentenced a former Fidelity trader 30 months in prison, reports Reuters
. The trader, Richard Callipari
, had attempted to defraud the fund giant in a scheme that would have taken more than $2 million from Fidelity
Callipari worked as a Fidelity trader until April of 1997. He then moved to JAS Securities. While at JAS he let Thomas Connolly, a former colleague at Fidelity who was still at the fund firm, trade in index options for the benefit of his JAS account. JAS had no Fidelity account and the Fidelity trader was not authorized to make the trades.
After an initial run in which Callipari's account made $500,000, a series of losing trades in options based on the Standard & Poor's 100 index made over a three day period left him in $2.39 million in the hole. He then claimed that the trades were not authorized, making Fidelity eat the losses.
Callipari's sentence starts in August.
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