Putnam Investments said on Tuesday a pair of executives and two other mid-tier employees have left the firm following the recent discovery of "operational errors" made by the individuals back in 2001.
Boston-based Putnam said it has launched a search effort to replace Karnig Durgarian, its now-former investor services unit operations chief. Steven Krichmar, head of global operations services, will fill the role vacated by Durgarian, on an interim basis.
Putnam has also named Brett Browchuk the new head of its defined contributions servicing unit. Browchuk, currently the head of operations services and investment operations, will serve in the dual roles with the firm, and replaces Virginia Papa, who left the firm.
Putnam said it discovered the mistakes during a review of its compliance monitoring initiatives, but that they are not connected to the firms market-timing woes. Putnam did not disclose the names of the other two employees that left.
Reportedly, an internal investigation uncovered that the former employees failed to notify Putnam executives and an investor, a corporate retirement fund, to a delay in investing assets that cost the client $1.5 million in potential gains. Putnam said it will pay restitution.