Putnam Advisory, a unit of Boston-based Putnam Investments, was charged yesterday by Massachusetts state regulators with deceiving investors who purchased about $3 billion in mortgage-related securities created and sold by Putnam several years ago.

In the 66-page complaint against Putnam Advisory, Massachusetts Secretary of the Commonwealth William Galvin outlined how the firm allowed Magnetar Capital, a well-known Illinois hedge fund, to aid in the selection process for securities to be packaged up as collateralized debt obligations that Putnam was creating and selling. Investors paid about $3 billion for the two CDOs—Pyxis 2006 and Pyxis 2007—before the securities went bust during the financial crisis.

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