We've been waiting for something like this to happen. The NASD and SEC have fined Jefferies nearly $10 million for doling out gifts and entertainment worth more than $1.6 million to Fidelity traders. The list includes what traders across the industry once considered legitimate perks: chartered air travel, sports merchandise, wine, golf outings and more. Two Jefferies traders were punished. One was permanently barred. A lot of this stuff goes on (or went on anyway), and no one would be surprised if other firms end up being fined, however, the extent of Jefferies' activity seemed to be way above average. Fidelity has already responded fairly strongly by adopting new policies and putting a new management structure in place.

Read more on the fines:
- in this MarketWatch article

Also: Fidelity trader and family suspected of illegal trading practices. Article