Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, June 4, 2007

SEC Settles Market Timing Charges Against Two Former Putnam Managers

The SEC announced today that a final judgment  by  consent  was entered against Justin Scott and Omid Kamshad, two former  Managing  Directors and portfolio managers at  Putnam  Investments.  The  final  judgments against Scott and  Kamshad permanently  enjoin  them  from  violating antifraud provisions of the Investment Advisers Act, require  them  to disgorge their ill-gotten gain, plus prejudgment interest,  and  order them each to pay a $400,000 civil penalty. The Commission's complaint alleged that  Scott and Kamshad engaged in inappropriate trading of  Putnam  mutual  funds shares, including in mutual  funds  over  which  they  had  investment authority. The Commission charged that Scott and Kamshad's  short-term trades,  which  were  made  in  their   Putnam-administered   deferred compensation and retirement accounts, violated their  responsibilities to other fund shareholders, that Scott and Kamshad failed to  disclose their trading and that, by  their  trading,  they  potentially  harmed other fund shareholders.

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