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FIDELITY TRADER CHARGED WITH SECURITIES FRAUD

 BOSTON, Feb. 19 /PRNewswire/ -- The U.S. Attorney's Office filed charges against a former employee of Fidelity Investment (Fidelity) for his role in a securities fraud scheme which defrauded "market makers" of approximately $83,000.
 U.S. Attorney A. John Pappalardo today announced the filing of an Information charging Ken L. Anderson, age 32, of 21 Warwick Rd., Brookline, Mass., with 56 counts of securities fraud.
 The Information alleges that Anderson was a trader of over-the- counter (OTC) securities at Fidelity and traded in the account of a close friend. In trading in that account, Anderson bought and sold shares of securities at prices that were more favorable than the prices at which the shares were actually trading at the time of the trade. The Information alleges that Anderson created reports of trades that never actually occurred. In those reports, Anderson misrepresented what the trading price was and that a "market maker," a company that trades shares with Fidelity, had filled and authorized the trade. When a market maker subsequently received a report showing there was a trade of which it had no record, it would contact Anderson, who would convince the market maker that it had made an error and should accept the trade. In this way, Anderson made an immediate trading profit, since he traded the shares at a more favorable price than the actual market price. In the 56 trades forming the basis for the counts charged in the Information, Anderson caused losses to various market makers totalling approximately $83,000.
 The case was investigated by Special Agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Jonathan L. Kotlier of Pappalardo's Economic Crimes Unit.
 -0- 2/19/93
 /CONTACT: Press Officer in U.S. Attorney's Office, 617-223-9445/


DD -- NE009 -- 8426 02/19/93 13:44 EST
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Publication:PR Newswire
Date:Feb 19, 1993
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