Putnam Investments has found itself an industry example again, only this time, regulators are praising the Boston-based fund firm, once synonymous with scandal and sanctions, as a model corporate citizen.

On Dec. 30, the Securities and Exchange Commission charged six former executives of Putnam Fiduciary Trust Co. (PFTC), but not the transfer agent itself, with civil fraud. Regulators claim that in January 2001, the team conspired to cover up a mistake at a cost of $4 million to investors in several mutual funds and one retirement plan. The scam went undetected until 2004, when Kevin Crain, one of the accused six who had "been terminated for other reasons," blew the whistle, according to the Federal complaint filed with the United States District Court in Massachusetts.

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