A grand jury is looking at evidence gathered by the U.S. attorney's office in its probe into whether brokerages bribed Fidelity traders. The Boston Globe reported Friday that US Attorney Michael J. Sullivan empanelled the grand jury in Boston.

Empanelling a grand jury is the first step in bringing criminal charges in a case.

The news came a day after the New York Times first reported on the case, adding that some Fidelity traders may have been given drugs and sexual favors in exchange for sending order flow to the brokerages. Repeated references to drugs and sex were reportedly found in emails the investigators obtained through subpoena.

The U.S. Attorney's Office is also trying to determine whether some brokerages used information gleaned from Fidelity traders to front-run the fund firm's trades.

Field agents from the Federal Bureau of Investigation, according to the paper, are handling the investigation.

At this point, the investigators are reportedly still attempting to determine whether any criminal activity took place.

The paper also reports that Lazard Ltd. was among the brokerages subpoenaed as part of the Federal investigation. The NASD and SEC are conducting separate probes into the allegations.

Fidelity officials have repeatedly said that they are fully cooperating will all of the investigations.  

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