Securities fraud to be charged

Tuesday, Oct. 21, 2003 | 9:30 a.m.

BOSTON -- Massachusetts securities regulators plan to charge Putnam Investments with civil securities fraud as part of an investigation into alleged improper "market timing" practices in the trading of mutual funds, according to a published report.

The Boston Globe, citing two sources familiar with the matter, reported today that within a matter of days Putnam will face one allegation of allowing individuals to trade quickly in and out of mutual fund accounts in violation of company policies. The second count would accuse the company of failing to treat shareholders equally by allowing some to participate in market-timing.

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