The SEC says that former Putnam Investment advisers Omid Kamshad and Justin Scott have settled charges that they improperly traded mutual fund shares. The SEC says that they did so without denying or admitting wrongdoing and are barred from future violations of the 1940 Investment Advisers Act.
In addition, Scott agreed to disgorging $489,439 plus prejudgment interest of $159,475, while Kamshad will disgorge $57,157 and a $13,709 prejudgment interest. They also agreed to being suspended from the advisory industry for one year and to each paying $400,000 civil penalties.
The SEC had accused both men of making short-term trades in their Putnam-administered compensation and retirement accounts, potentially causing harm to other shareholders. In this case, the SEC has alleged that by taking part in personal trading while being in charge in other investors’ funds, both men did not appear to have their investors interests in mind.
In 2004, Putnam said it would pay $110 million to settle Massachusetts and federal charges connected to its alleged role in the controversy surrounding the firm. Other executives involved have already made deals with regulators.
The securities attorneys at Shepherd Smith and Edwards represent injured persons who have lost money because of the inappropriate actions of mutual fund managers, broker-dealers, and others in the industry. Contact Shepherd Smith and Edwards to schedule your free consultation.
Related Web Resources:
Ex-Putnam managers to settle, pay $1.5m, Boston.com, June 5, 2007
The SEC Order for Omid Kamshad (PDF)
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