Putnam Investments controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
2007
Former executives settle improper-trading and disclosure allegations
Former managing directors Justin Scott and Omid Kamshad agreed to civil penalties and temporary suspensions over alleged improper mutual-fund trading. Former chief executive Lawrence Lasser separately settled SEC allegations concerning disclosure of brokerage arrangements.
2006
Alleged concealment of investment-processing error
The SEC accused former Putnam employees of defrauding mutual funds and a corporate retirement plan in connection with a delayed asset transfer and an alleged effort to assign the resulting loss to other funds.
2005
Undisclosed broker-dealer marketing arrangements
The SEC found that Putnam and an affiliate had not adequately disclosed conflicts related to preferred-marketing arrangements with more than 80 broker-dealers. Putnam paid a $40 million penalty distributed to affected funds.
2003
Market-timing and employee-trading scandal
The SEC and Massachusetts regulators alleged that certain Putnam portfolio managers and employees engaged in excessive short-term or market-timing trades in Putnam mutual funds and that the firm failed to supervise and disclose the conduct adequately. Putnam agreed to governance, compliance, employee-trading, and ethics reforms, followed by monetary settlements and restitution.