Shareholder Spotlight : Fidelity - A Dive into the Filth of Finance's Family Jewel

Listen, I’ve worked in some of the dirtiest corners of UK blue collar industry where the real magic – or madness – happens. Returning home with the fresh scent of weld fumes and diesel. But nothing quite prepares you for the stench wafting from the polished towers of Fidelity Investments, that supposed bastion of American financial virtue, run by the Johnson family like some twisted dynasty. FMR LLC, as they’re formally known, manages trillions, promises the moon to everyday punters saving for retirement, yet time and again, they’ve been caught with their hands in the till, or worse, in places that’d make a hardened chef blush. This isn’t just corporate malfeasance; it’s a gritty saga of greed, betrayal, and outright bollocks that leaves investors gutted like a fresh catch.Fidelity’s the kind of outfit that struts around like the ethical elder statesman of Wall Street, all zero-commission trades and feel-good ads about building futures. But peel back the layers, and it’s a festering mess of scandals that’d make you spit out your coffee. From lavishing traders with drugs and strippers to funnelling cash to hate groups, and now, let’s not forget, their cosy holdings in Cummins Inc. (CMI) – yeah, that engine giant that’s no stranger to ethical shortcuts, having coughed up billions in fines for emissions cheating that poisoned the air we all breathe. As of June 2025, Fidelity’s funds hold millions of shares in CMI, making them a top institutional investor in yet another company in the Cummins ecosystem peddling alternative ideas on ethical behaviour, where dodging regulations is just business as usual. It’s all connected in this web of dodgy dealings, and Fidelity’s right at the heart, pretending their shit doesn’t stink.

The Gifts That Kept on Giving: Drugs, Dwarves, and Debauchery

Picture this: It’s the mid-2000s, and Fidelity’s traders are living like rock stars on someone else’s dime. The SEC comes knocking in 2008, uncovering a cesspool of improper gifts from brokers desperate for business. We’re talking private jets to Super Bowls, luxury golf outings, and – get this – funding for illegal drugs, strip club romps, and even a stag do featuring dwarves tossing about like party favours. Peter Lynch, the legendary fund manager turned folk hero, gets dragged in for accepting tickets and trips. The firm coughs up an $8 million fine, plus $42 million in restitution to wronged funds, but the real kicker? Thirteen employees slapped with charges, exposing a culture where fidelity to ethics was about as real as a three-dollar bill.It’s outrageous, innit? These blokes are handling your pension, your kids’ college fund, and they’re out there snorting lines and gambling away on the company tab. The Johnson family, with Abby at the helm, spins it as isolated incidents, but bollocks – this was systemic, a raw display of entitlement that’d make you want to hurl. And it didn’t stop there; echoes of this hedonism ripple through later scandals, proving once and for all that Fidelity’s idea of “client first” is a joke best told in a dimly lit bar.

The Dark Side: Harassment, Bias, and a Toxic Bro Culture

Fast forward to 2017, and the #MeToo wave crashes into Fidelity’s glass headquarters. Former female employees blow the whistle on a “dark side” rife with sexual harassment, retaliation, and outright sexism. Women reporting groping or lewd comments? Shunted aside or sacked. Under CEO Abby Johnson – hailed as a trailblazing billionaire – the place allegedly festered with bias, where blokes got slaps on the wrist while whistleblowers got the boot. It’s gritty stuff: one suit describes a revenge culture that’d fit right in a mob flick, with HR turning a blind eye to protect the boys’ club.Fucking hell, in a firm preaching diversity and inclusion, this is the height of hypocrisy. Johnson goes public with apologies and reforms, but the damage is done – trust eroded, lives ruined. And it’s not ancient history; whispers of lingering issues persist, painting Fidelity as a place where power dynamics are as skewed as a rigged slot machine.

Funding the Fringe: Hate Groups and Philanthropic Facades

Here’s where it gets properly shocking. Fidelity Charitable, their donor-advised fund arm, becomes a pipeline for dodgy donations. Between 2015 and 2017, investigative digs reveal $4.9 million funnelled to 31 hate groups – anonymous cash enabling extremism under the guise of charity. Activists rage, demanding transparency, but Fidelity shrugs, citing donor privacy like it’s a sacred vow.This ain’t just bad optics; it’s enabling the worst of society while raking in fees on billions in assets. In a world already fractured, Fidelity’s playing both sides – virtue-signalling on one hand, greasing the wheels of division on the other. And don’t get me started on recent reports of millions flowing to outfits accused of aiding undocumented migrants through the Vera Institute. It’s a raw, unapologetic betrayal of any moral compass, leaving you wondering: whose side are they really on?

Whistleblowers in the Crosshairs: Retaliation and Rigged Games

Whistleblowers? Fidelity treats ’em like pests. Take the 2014 Supreme Court dust-up in Lawson v. FMR LLC: ex-employees allege getting the sack for flagging mutual fund fraud, like puffed-up valuations screwing investors. The Court sides with protections under Sarbanes-Oxley, but the scar remains – a firm that silences dissent.Jump to 2024, and advisor Michael Maeker sues, claiming he was fired for resisting pressure to flog high-fee products, breaching SEC rules. It’s a pattern: incentives twisted to prioritise profits over punters, with allegations of SEC collusion in some cases. Outrageous? Absolutely. These are the guardians of your wealth, yet they’re rigging the game, leaving honest folk out in the cold like yesterday’s leftovers.

Advisor Scams and Supervisory Screw-Ups: Millions Vanished

The hits keep coming. In 2025, investors haul Fidelity to court over an advisor’s $11.1 million fraud via unauthorised trades and Ponzi-like schemes. Another case: an employee nicks $750k from overseas clients’ stock plans, landing Fidelity a $600k fine for shoddy oversight.It’s gritty negligence on a grand scale – clients gutted, dreams dashed, while the firm pays peanuts in penalties. Repeated lapses scream incompetence or worse, indifference. In finance’s underbelly, this is the norm, but at Fidelity? It’s a betrayal that burns.

Retirement Rip-Offs: 401(k) Fees and Fiduciary Fails

Retirement savings? Fidelity’s bread and butter, yet riddled with rot. ERISA suits from 2014-2020 accuse ’em of secret fees to third-party funds, inflating costs for plans. One $28.5 million settlement for failing to monitor in-house investments; another blasts self-dealing in their own 401(k).Bollocks to fiduciary duty – it’s self-enrichment, siphoning from workers’ nest eggs. Billions affected, yet Fidelity settles without admitting guilt. Sound familiar?

Data Disasters and Privacy Piss-Takes

2024-2025: Data breaches expose millions. Class actions rage over “preventable” hacks compromising personal info, ripe for identity theft. Add outages locking punters out during market booms, and slashed deposit limits sparking panic – it’s chaos. In our digital age, this is unforgivable sloppiness, leaving clients exposed like raw meat on a counter.

Insider Perks and Conflicts: The Johnson Clan’s Golden Ticket

A 2016 probe uncovers the Johnsons snagging hot pre-IPO deals denied to fund investors – conflicts galore, costing everyday folk opportunities. Family-owned? More like family-favoured. It’s inequality baked into the system.

MMTLP Mess: Frozen Assets and Market Manipulation Claims

2022 onwards: The MMTLP trading halt freezes billions, with Fidelity accused of overselling, tax fraud via bogus forms, and failing dividends. Lawsuits and congressional eyes pile on.Retail investors screwed – a gritty tale of big finance versus the little guy.

Ethical Lapses Abroad: Human Rights Hypocrisy

2020 reports slam Fidelity for investing in firms linked to abuses, despite ESG bluster. Lip service to rights while funding wrongs.And that antisemitic employee fired in 2025? Vile messages sparking outrage – another stain on their culture.

The Endless Fines: A Litany of Lapses

FINRA fines stack up: millions for due diligence fails from 2007-2023. Insider trading ties, historical suits – it’s a never-ending grind of greed. Fidelity’s no saint; it’s a machine oiled by shortcuts, leaving a trail of wreckage. Time to wake up, punters – your money’s in mucky hands.

Lee Thompson – Founder, The Cummins Accountability Project

Shareholder Spotlight : Fidelity – A Dive into the Filth of Finance’s Family Jewel