A former Putnam Fiduciary Trust Company managing director says federal regulators should leave him out of a suit they filed against several of the company’s other former executives.
Kevin Crain, who once ran the retirement plan administration unit at Putnam Fiduciary, Boston, says he helped draw his company’s attention to the matter at the heart of the case.
The U.S. Securities and Exchange Commission moved Tuesday to file a suit in the U.S. District Court in Boston that accuses Crain and 5 other former Putnam Fiduciary executives of conspiring to defraud a Putnam Fiduciary retirement plan client and shareholders of several Putnam mutual funds.
Because of a 1-day delay in fulfilling an asset allocation request, the client’s retirement plan members lost about $4 million in invest gains, SEC officials allege in their complaint.
Instead of admitting the error, the executives tried to shift $2.7 million of the difference onto the books of Putnam mutual funds and let the retirement plan bear the rest of the cost of the error, the officials allege.