California A.G. Probes Franklin, PIMCO, American Funds Reports

Published January 05, 2003, 1:00 a.m. EST

Updated January 05, 2003, 1:00 a.m. EST

1 Min Read

California Attorney General Bill Lockyer has subpoenaed a number of leading mutual fund names in the state, his office announced Friday.

Processing Content

Lockyers office began the probe in conjunction with a new law broadening its powers. Franklin Templeton, PIMCO and American Funds are among those the office has contacted, according to reports. Heretofore, PIMCO and American Funds are two names that have not been sullied by the scandal.

California is looking into whether the funds failed to reveal to investors that they rewarded brokers higher commissions for touting their funds. Morgan Stanley recently reached a $50 million settlement with the SEC for such directed-brokerage practices, and that case implicated PIMCO and American Funds, according to a source.

Lockyers office declined comment for TheStreet.com on the matter.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

California A.G. Probes Franklin, PIMCO, American Funds  Reports

California A.G. Probes Franklin, PIMCO, American Funds Reports