Concetta A. Donovan and David K. Donovan, Sr.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19983 / January 29, 2007

SEC v. Concetta A. Donovan and David K. Donovan, Sr., (United States District Court for the District of Massachusetts, 06-MC-10454-RCL)

Court Orders Parents of Former Fidelity Trader to Comply with Subpoenas in Connection with an Investigation Concerning Stock Trading

The Securities and Exchange Commission announced today that on January 25, 2007, a Massachusetts federal court issued an order requiring Concetta A. Donovan and David K. Donovan, Sr. to comply with Commission subpoenas. Specifically, the Honorable Reginald C. Lindsay of the United States District Court for the District of Massachusetts ordered that Concetta Donovan and David Donovan, Sr. produce all documents responsive to the Commission's subpoenas, and that Concetta Donovan appear for investigative testimony.

On November 30, 2006, the Commission filed an application for an order to show cause and for an order to comply with administrative subpoenas against Concetta Donovan and David Donovan, Sr. The Commission sought to compel Concetta Donovan and David Donovan, Sr. to produce documents and Concetta Donovan to appear for testimony. According to the Commission's application and supporting papers, the Commission staff is investigating potential illegal insider trading in the securities of Covad Communications Group, Inc. by, among others, Concetta Donovan, David Donovan, Sr., and their son and then equity trader for Fidelity Investments, David K. Donovan, Jr.

On April 6, 2005, the Commission issued investigative subpoenas to Concetta Donovan and David Donovan, Sr., which required them each to produce documents relevant to the investigation and to appear before the Commission staff for testimony. In its application and supporting papers, the Commission alleged that, despite a number of accommodations offered to Concetta Donovan and David Donovan, Sr., they refused to produce the subpoenaed documents and Concetta Donovan refused to appear for testimony. According to the Commission's application, neither Concetta Donovan nor David Donovan, Sr. had a valid justification for their failure to comply with the subpoenas, and court orders were necessary to compel them to produce the subpoenaed documents and to compel Concetta Donovan to appear for testimony.

For further information, please see Litigation Release Number 19930 (December 1, 2006) [Commission Files Subpoena Enforcement Action Against Concetta Donovan and David Donovan, Sr.].