A Massachusetts appeals court has denied a $15 million payout to Peter Scannell, the former Putnam Investments call center employee who blew the whistle on mutual fund trading and set off an industrywide scandal.
Scannell had sought up to a $15 million share of Putnam’s $193.5 million settlement under the provisions of a Massachusetts law called the False Claims Act, designed to give incentives to whistleblowers. The court said it was denying Scannell’s claim because he failed to file a lawsuit.
Massachusetts State Attorney General Martha Coakley was opposed, like her predecessor, Thomas F. Reilly, to pay Scannell.
Scannell’s attorney, Robert C. Autieri, said he would confer with his client to decide what steps to take next.
Autieri also called the decision disappointing. “It’s a chilling decision because if you’re someone with information and thinking about coming forward, you’ll see what Peter’s gone through: three years of litigation with the Commonwealth he worked with,” he said. “You may just say you should just ignore what’s going on.”