Ex-Putnam directors settle charges
Two former managing directors at Putnam have agreed to pay $400,000 each to settle charges against them.
Two former managing directors at Putnam Investments have agreed to each pay $400,000 to settle charges of improper trading.
The SEC said that former managers Justin Scott and Omid Kamshad violated their responsibilities to fund shareholders by engaging in short-term trades in their Putnam-administered deferred compensation and retirement accounts.
The directors had also agreed to a suspension from the association with any investment adviser for a year.
Mr. Scott and Mr. Kamshad did not disclose their trading and potentially harmed other shareholders, the SEC said.
In addition to the penalty, Mr. Scott of Marblehead, Mass. is required to pay $489,439 in disgorgement of ill-gotten profits and $159,475 in prejudgment interest.
Mr. Kamshad of London agreed to pay disgorgement of $57,157 and prejudgment interest of $13,709 on top of the penalty.
Half of the total liability that they have to pay may be offset by payments they make to settle a related action brought by the Secretary of State of the Commonwealth of Massachusetts.
Learn more about reprints and licensing for this article.
