2003-02-11 sec-litreleases litigation_release 64 KB 2,105 chars

SEC v. Richard P. Callipari; and Thomas J. Connolly, No. LR-17980, District of Rhode Island (Feb. 11, 2003) — Press Release

raw: Richard Callipari

Richard Callipari, No. LR-17980 (Feb. 11, 2003)

Caption
SEC v. Richard P. Callipari, et al.
Source JSON
summary

Former Fidelity trader Richard Callipari was convicted of obstructing an SEC investigation with false testimony, conspiring to defraud Fidelity, and committing ten counts of wire fraud by using a co-conspirator’s authorized access to generate $500,000 in illicit profits for his JAS account, then forcing Fidelity to absorb $2.39 million in losses by falsely denying authorization of losing trades.

paragraph

Richard Callipari, a former Fidelity trader, was convicted of obstructing an SEC investigation through false sworn testimony, conspiring to defraud Fidelity, and ten counts of wire fraud. Between July and September 1997, he colluded with Fidelity trader Thomas Connolly to execute unauthorized index options trades through Connolly’s account, generating $500,000 in profits—of which Callipari received $220,000—while JAS Securities had no account at Fidelity. When trades turned negative, causing $2.39 million in losses, Callipari falsely claimed he did not authorize them, shifting the entire loss to Fidelity. He faces up to five years per count in prison and fines of up to $250,000 per count or twice the gain/loss.

narrative

Former Fidelity trader Richard Callipari was convicted of obstructing an SEC investigation through false testimony, conspiring to defraud Fidelity, and ten counts of wire fraud. Beginning in July 1997, after his Fidelity position was eliminated, Callipari, now working for JAS Securities, colluded with Fidelity trader Thomas Connolly to execute unauthorized index options trades on the Chicago Board of Options Exchange using Connolly’s Fidelity access. These trades generated $500,000 in profits, of which Callipari personally received approximately $220,000, despite JAS having no formal account at Fidelity. In mid-September 1997, the trades turned sharply negative, resulting in $2.39 million in losses, after which Callipari falsely told Chicago Board traders he had not authorized the losing transactions, ensuring Fidelity bore the full financial burden. During the subsequent SEC investigation, Callipari provided false, misleading, and evasive sworn testimony to obstruct the probe. The FBI and SEC jointly investigated the case, leading to his federal conviction on all counts. He faces a statutory maximum of five years in prison per count and fines of up to $250,000 per count or twice the amount of gain or loss.

Enriched metadata

Scheme
obstruction (100%)
Court
District of Rhode Island
Outcome
convicted
Civil penalty
$250,000
Entity
Richard Callipari
Classified obstruction(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
15 U.S.C. § 78j(b)17 C.F.R. § 240.10b-518 U.S.C. § 134318 U.S.C. § 37118 U.S.C. § 134918 U.S.C. § 1956
Parties
Securities and Exchange CommissionRichard P. CallipariThomas J. Connolly
Keywords
calliparirichard calliparifidelityrichardrhode islandsecurities exchangeexchange commissionwire fraudfidelity traderchicago boardmillion lossesconvictedsecinvestigationsecurities

Extracted insights

Dollar amounts 5
  • $2.39M $2.39 million $1M–$10M
  • $500K $500,000 $100K–$1M
  • $250K $250,000 $100K–$1M
  • $250K $250,000 $100K–$1M
  • $220K $220,000 $100K–$1M
Entities 4
  • scheme_term conspiring to defraud fidelity and ten counts of wire fraud
  • person richard p. callipari
  • scheme_term the conspiracy and wire fraud counts
  • agency the securities and exchange commission
Triples 15
  • The Securities and Exchange Commission Announced A federal jury convicted Richard P. Callipari of corruptly endeavoring to obstruct and impede an SEC investigation by means of false, misleading, evasive and deceptive testimony
  • Richard P. Callipari Gave Sworn testimony, which the evidence showed was false
  • Callipari Was Convicted Of Conspiring to defraud Fidelity and ten counts of wire fraud
  • Callipari Was A Fidelity trader in Boston
  • Callipari Allowed A co-conspirator, Thomas J. Connolly, a Fidelity trader, to trade in index options on the Chicago Board of Options Exchange for the benefit of Callipari's JAS account
  • Connolly Made Successful trades for Callipari, earning $500,000 in profits
  • Callipari Received About $220,000 of those profits
  • Connolly's trading Turned Negative, resulting in about $2.39 million in losses
  • Callipari Tried To Reject All of the losing trades
  • Callipari Told Traders at the Chicago Board that he had not authorized them
  • Fidelity Ended Up Incurring All of the $2.39 million in losses
  • The Statutory Maximum Prison Sentence Is Five years in federal prison
  • The Conspiracy And Wire Fraud Counts Carry Fines of up to $250,000 or twice the amount of gain or loss
  • The Obstruction Count Carries A maximum fine of $250,000
  • The Case Was Investigated By The Federal Bureau Of Investigation in Boston, with assistance from the Securities and Exchange Commission
View original SEC litigation releasesec.gov
Extracted body text (2,105c) 
LITIGATION RELEASE NO. 17980 / February 11, 2003 U.S. V. RICHARD CALLIPARI, United States District Court for the District of Rhode Island, No. 02-CR-67-ALL FORMER FIDELITY EMPLOYEE CONVICTED OF OBSTRUCTING AND IMPEDING SEC INVESTIGATION The Securities and Exchange Commission announced that a federal jury convicted Richard P. Callipari, formerly of Johnston, Rhode Island, of corruptly endeavoring to obstruct and impede an SEC investigation by means of false, misleading, evasive and deceptive testimony. In February 1998, as the SEC was investigating Callipari's activities, he gave sworn testimony, which the evidence showed was false. Callipari also was convicted of conspiring to defraud Fidelity and ten counts of wire fraud. Callipari was a Fidelity trader in Boston whose job was eliminated in April 1997. Beginning in July 1997, according to the evidence, Callipari was working as a trader for JAS Securities, a New York city broker-dealer firm. Callipari allowed a co-conspirator, Thomas J. Connolly, a Fidelity trader, to trade in index options on the Chicago Board of Options Exchange for the benefit of Callipari's JAS account, even though JAS had no account at Fidelity and Connolly was not authorized to make such trades. Between July and early September 1997, Connolly made successful trades for Callipari, earning $500,000 in profits. Callipari received about $220,000 of those profits. In mid-September, however, Connolly's trading turned negative, resulting in about $2.39 million in losses. Callipari tried to reject all of the losing trades, telling traders at the Chicago Board that he had not authorized them, and, as a result, Fidelity ended up incurring all of the $2.39 million in losses. The statutory maximum prison sentence for each count is five years in federal prison. The conspiracy and wire fraud counts also carry fines of up to $250,000 or twice the amount of gain or loss. The obstruction count carries a maximum fine of $250,000. The case was investigated by the Federal Bureau of Investigation in Boston, with assistance from the Securities and Exchange Commission.
OCR text (2,105c · plain-text · 99% conf) 
LITIGATION RELEASE NO. 17980 / February 11, 2003 U.S. V. RICHARD CALLIPARI, United States District Court for the District of Rhode Island, No. 02-CR-67-ALL FORMER FIDELITY EMPLOYEE CONVICTED OF OBSTRUCTING AND IMPEDING SEC INVESTIGATION The Securities and Exchange Commission announced that a federal jury convicted Richard P. Callipari, formerly of Johnston, Rhode Island, of corruptly endeavoring to obstruct and impede an SEC investigation by means of false, misleading, evasive and deceptive testimony. In February 1998, as the SEC was investigating Callipari's activities, he gave sworn testimony, which the evidence showed was false. Callipari also was convicted of conspiring to defraud Fidelity and ten counts of wire fraud. Callipari was a Fidelity trader in Boston whose job was eliminated in April 1997. Beginning in July 1997, according to the evidence, Callipari was working as a trader for JAS Securities, a New York city broker-dealer firm. Callipari allowed a co-conspirator, Thomas J. Connolly, a Fidelity trader, to trade in index options on the Chicago Board of Options Exchange for the benefit of Callipari's JAS account, even though JAS had no account at Fidelity and Connolly was not authorized to make such trades. Between July and early September 1997, Connolly made successful trades for Callipari, earning $500,000 in profits. Callipari received about $220,000 of those profits. In mid-September, however, Connolly's trading turned negative, resulting in about $2.39 million in losses. Callipari tried to reject all of the losing trades, telling traders at the Chicago Board that he had not authorized them, and, as a result, Fidelity ended up incurring all of the $2.39 million in losses. The statutory maximum prison sentence for each count is five years in federal prison. The conspiracy and wire fraud counts also carry fines of up to $250,000 or twice the amount of gain or loss. The obstruction count carries a maximum fine of $250,000. The case was investigated by the Federal Bureau of Investigation in Boston, with assistance from the Securities and Exchange Commission.