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Fidelity To Pay $1m To Settle Allegations It Failed To Stop Fraud

FYI: Fidelity Investments agreed to pay more than $1 million to settle allegations that it failed to stop a Wisconsin woman who stole money from investors while posing as a Fidelity broker.
Regards,
Ted
https://www.bostonglobe.com/business/2015/12/18/wisconsin-woman-defrauded-fidelity-clients-more-than-million/Udr9tKykn0592ZTk0nxZaM/story.html

Comments

  • Fidelity does not come across in this one I was particularly troubled by the reference to one person checking 6000 warnings by the automated equipment.
  • My husband has a retirement account with Fidelity. He gets about two phone calls per year from someone (never the same voice) who says he is an adviser for Fidelity assigned to his pension fund. The callers may or may not be who they claim to be. I talked at length with one. He didn't ask for personal or account information but he knew nothing about the stable value fund that is a core fund in the plan. The last call we got was to help with my husband's RMD coming up next year. (Doesn't Fidelity always use MRD, not RMD, on the website?) I told him when the time was right I would call Fidelity or fill out the forms. He tried to give me a number to call because he said, at this point, that he wasn't actually our adviser but the person at the number was. All of this may be above board but I have no idea why Fidelity would think people would talk to a stranger calling on the phone trying to be helpful or use a Utah phone number on a callback.
  • Thanks for telling us of that, Anna. Smells VERY bad.
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