Jefferies Settles Gift Probe

The broker will pay nearly $10 million in penalities.
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Jefferies

(JEF) - Get Report

is paying nearly $10 million in fines to settle an investigation into allegations that it gave gifts and gratuities to Fidelity employees in a bid to win lucrative trading business from the giant mutual fund.

The settlement with the

Securities and Exchange Commission

and NASD stems from a long-running investigation into improper dealings between brokerages and mutual funds.

Regulators founds that Jefferies gave more than $2 million in gifts and gratuities to Fidelity employees in a bid to win more trading business over a two-year period ending in 2004. The gifts included tickets to sporting events and Broadway shows and even assistance in paying for one Fidelity trader's elaborate bachelor party in Miami.

The SEC also settled charges with Scott Jones, Jefferies' director of equity trading, over allegations he failed to properly supervise Jefferies employees. Regulators also reached a settlement with former Jefferies employee Kevin Quinn, who was charged with aiding and abetting the activity.