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Putnam Escapes Charges By Acting Fast

Putnam Fiduciary Trust Co. has escaped fraud charges by acting quickly against six former officers whom the Securities and Exchange Commission has charged with engaging in a scheme to defraud a defined contribution plan client and a group of mutual funds of about $4 million.

Putnam Fiduciary Trust Co.has escaped fraud charges by acting quickly against six former officers whom the Securities and Exchange Commission has charged with engaging in a scheme to defraud a defined contribution plan client and a group of mutual funds of about $4 million. The SEC, announcing the charges against Karnig Durgarian, Donald McCracken, Virginia Papa, Sandra Childs, Kevin Crain and Ronald Hogan, praised Putnam for its "swift, extensive and extraordinary cooperation" in the agency's investigation that led to the charges, and said it would not seek an enforcement action against the firm.

Putnam, says the SEC, cooperated with "prompt self-reporting, an independent internal investigation, sharing the results of the investigation [with the government], terminating and other wise disciplining responsible wrongdoers, providing full restitution to its defrauded clients," paying a variety of fees and implementing new control "to prevent a recurrence of such conduct."

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