SEC, ex-Fidelity staff in pact on gifts charges

BOSTON, Oct 10 (Reuters) - Eight mostly former employees of mutual fund firm Fidelity Investments have reached preliminary settlements with the U.S. Securities and Exchange Commission (SEC) in a gift-taking probe, according to court documents.

The SEC had in March charged Fidelity, its most famous fund manager, Peter Lynch, and 12 other former or current employees of the firm with improperly accepting travel, entertainment and other lavish gifts paid for by Wall Street brokers.

Fidelity had agreed then to pay $8 million and Lynch about $20,000 to settle the charges. Both Fidelity and Lynch, who ran the company's flagship Magellan fund from 1977 to 1990, settled without denying or admitting the charges. Two other individuals also settled in March.

Of the remaining 10, eight have now entered into in-principle settlements with the SEC's Division of Enforcement, according to the documents from a Boston administrative court. The documents were provided to Reuters by the SEC. The settlements, whose terms are not public yet, are subject to approval by the SEC.

David Bergers, director of the SEC's Boston office, declined to comment on the settlements.

Fidelity spokeswoman Anne Crowley said seven of the eight individuals are no longer employed at Fidelity. One individual, who is still employed by the firm, has not been on its trading desk for more than three years. (Reporting by Muralikumar Anantharaman; editing by Carol Bishopric)