Two former fund managers at Putnam Investments will pay $1.5 million to settle allegations they improperly traded mutual fund shares, the SEC and Massachusetts announced Monday. Justin Scott and Omid Kamshad neither admitted nor denied the allegations.

Scott is paying disgorgement of $489,439 plus $159,474 in interest and a civil penalty of $400,000, for a total of $1,048,914 to be split evenly between the SEC and the Secretary of State of the Commonwealth of Massachusetts. Scott has also been suspended from working at any investment adviser for 12 months.

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