One day after admitting it placed three employees on administrative leave for possible market timing infractions, Franklin Resources announced Tuesday that two U.S. prosecutors have served the company with subpoenas.

The prosecutors, one from California and one from Massachusetts, presented the subpoenas just two months after New York Attorney General Elliot Spitzer and the Securities and Exchange Commission did the same.

San Mateo, California-based Franklin, an arm of Franklin Templeton Investments, has admitted that a small number of ex-employees have market timed inside of their own 401(k) accounts. On Monday, the company placed two officers and one trader on administrative leave for these practices.

 

 

 

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.