Monday, June 4, 2007
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.