Former Lazard Execs Charged By SEC With Improper Gifts To Fidelity Employees

The Securities and Exchange Commission charged three former Lazard Capital Markets execuitves, including David L. Tashjian, former head of U.S. sales and trading, with improperly providing as much as $600,000 in gifts to former Fidelity equity trader Thomas H. Bruderman. The two other Lazard executives charged were former registered representatives, Robert A. Ward and W. Daniel Williams. A fourth Lazard executive, Louis Gregory Rice, was charged with failure to properly supervise. Bruderman and other fidelity executives were charged by the SEC last March with accepting the improper gifts. The SEC specifically alleges in this case that the Lazard employees facilitated Bruderman's own violations of securities laws by "taking him on trips to such destinations as Europe, the Bahamas, the Caribbean, Florida, and Napa Valley, Calif., often by private plane, and paying for his meals and lodging at high-end restaurants and hotels." Bruderman also was provided with race car driving lessons, adult entertainment and expensive wine. Further, some $50,000 was given toward an elaborate bachelor party in Miami for Bruderman. Lazard agreed to a consent decree and to pay nearly $3 million in fines and disgorgement fees. The four Lazard executives also signed consent decrees and paid fines ranging from $25,000 to $75,000 and agreed to a brief suspensions from any association with a broker, dealer or other investment company.

Read the SEC press release here.