Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

Fund Forward

Editor's Desk: Putnam Whistleblower Unlikely to See Reward

When Peter Scannell appeared before Congress to testify about market timing at Putnam Investments, he hardly appeared the picture of a valiant hero. Scannell was somewhat incoherent, his written testimony riddled with misspellings, according to one of our reporters who was there.

A former waiter at a casino, Scannell got a job as a customer service rep at Putnam's call center, where he noticed irregular trading by a number of clients, including a chapter of the Boilermakers union.

As the story of Scannell's involvement in the scandal unfolded, it continued on a bizarre path, with Scannell claiming he was hit on the head with a brick by a man wearing a Boilermakers sweatshirt outside an Alcoholics Anonymous meeting site, where Scannell was headed.

While Scannell may not appear to be a champion, not only did he do investors a good turn by exposing pervasive greed throughout the industry, but he also helped regulators put an end to the malfeasance in 2003 before it got even more out of hand and became even more of a black eye for an industry that has always touted its fiduciary honor. Although the national media briefly touched on the scandal, it largely dropped it and left it to the financial and business press.

As it was, the market timing was largely confined to three years, beginning in 2000 as the market tanked and hedge funds and mutual funds resorted to desperate measures to seek sure profits.

For the Appeals Court of Massachusetts to deny Scannell's case seeking as much as $15 million of Putnam's $193.5 million settlement with regulators because he failed to sue Putnam-although he did sue the state-appears to be based on a technicality rather than on merit. The appeals court said Scannell is not entitled to an opportunistic "bounty."

Although Scannell might appeal the ruling to the Massachusetts Supreme Judicial Court, it now appears highly unlikely he will ever be compensated.

No, Scannell is not the picture of a hero and probably had no idea of what he was getting himself into. That includes not getting involved, as the court has alleged, for monetary gain.

Scannell certainly made a great sacrifice by coming forward. It is not only fitting to compensate him in some way but to set an example so others can be as brave.

(c) 2007 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

http://www.mmexecutive.com http://www.sourcemedia.com

Recent Posts

Mutual Funds Must Go High-Tech-v. 3.0

Over the last number of years, mutual fund transfer agencies and shareholder communications companies have tried to convince shareholders to accept paperless summary prospectuses, proxies, trade confirmations and electronically stamped signatures. Fund supermarkets and web home pages have broadened their horizons to include market commentary, videostreaming and personal financial news. At the same time, exchange-traded funds, funds-of-funds, hedge FoFs, unified managed accounts, target dates, 401(k) auto enrollment and heightened awareness among people throughout the country of the difficulties of being retired-have taken off.

Test of the Massey Mine

Fund giant boards of directors at AllianceBernstein, American Funds, Fidelity, Vanguard and others are reportedly starting to bring about meaningful change in the corporations in which they are invested. Proof should come any day now, when the shareholder proxy votes from the annual meetings are released. Fund chief executive officers spoke about the power and influence their proxies wield in an interesting Reuters article last week, "Mutual Funds Seek to Shed 'Rubber Stamp' Tag."

Milestones

In 2011, 401(k) plans will turn 30, but the milestones the mutual fund industry has reached in this time are but a nanosecond in the history of U.S. retirement policy. Executives we interviewed for this special edition of Money Management Executive for the Investment Company Institute's meeting in Washington, speak to important milestones of the recent past and into the future. Look inside for observations and forecasts by Ted Benna, Robert L. Reynolds, Dan Fuss, David C. John, Steven Miyao and others.

At Age 30, It's Time for a Revamping for the 401(k)

This year marks the 30th anniversary of the 401(k), the revolutionary retirement savings vehicle that has been annihilating pension plans, empowering individuals to take part in the stock market-and, sadly, that left retirees with the misfortune of leaving the workforce in 2000 or 2008 very badly off. The cracks in the system are prompting many asset managers, regulators and retirement experts to take a hard look at 401(k)s and how they can be fixed.

Index of Posts

87 Comments

2011 Winter Paris Fashion Week, the most anticipated non-LV dude Chanel Handbags a tremendous display must go. custom made Marc Jacobs (Marc Jacobs) watched the movie "midnight gatekeepers" have inspired after the picture of Lucia wearing a cap Chanel Bags, a bold attempt to take advantage of the military uniform picture as the themes, and direct us into a producer new era of feminist .In inclusion to the LV warlords for Women earlier to us to show, when once more take pleasure in them together below this season's LV handbag! Time MARCJACOBS as LV creative director and not too long, but good LV package deal to produce a great offer of exceptional works, this 2012 spring LV still deliver us numerous surprises. 2012 spring sequence of bags away from your LV can be seen, bohemian handbag and shoulder bag to a comeback next season, although the LV bag the brand new bags in the style and detail design reminds me of the PierreHardy and Gucci. LV2012 spring sequence continues the producer has always been the luxury style clutch bag, shoulder bag or handbag, can add elegance for women, noble and charming temperament.Until as a final point the spring sequence LV , LV, 2012 MARCJACOBS really do not let me down, in fact, he never do not let me down. LV Cheap Supra Shoes attaches awesome worth to the structural sense and practicality, even a tiny clutch bag large enough space to suit the everyday necessities of paraphernalia. LV2012 spring sequence is ideal for women to concentrate on practical accessories, good leather-based may be the main product of this sequence of bags, smooth surface area looks noble and luxurious, superior and very simple design makes dumping it. Beautiful LV is the two luxurious and practical, just in the creative facet does not give us too numerous surprises, most from the bag style away from your LV earlier to the quarter design, just a tremendous fuss in the fabrics and colors, for example the utilization of high-grade leather-based , snakeskin, linen, and ostrich, color Zeyi generous and stylish neutral color-based, highlights the low-key luxury.

Posted by: cheapthings c | June 4, 2012 8:33 PM


This attractive cheap nike free 7.0 have outstanding jordans footwear, not just due to the standard, fine implementation particulars, but additionally an excellent show of high recognition and good status for sports shoes. Jordans 4 retro you comfort womens free run+ nike and security shoes.All of the Jordan 4 retro produced perfection, everybody nike air max 95 is exclusive and isn't just like another. The hallmark of Nike Air Jordan footwear and boots cannot be summed in short since they're aerodynamic high-performance nike free on sale art footwear are not only seen comfortable to put on, but additionally very durable. If you possess the aim of novice hockey gamers 4-Jordan the very best mens nike air max 87 footwear, possibly you, however the simple fact may also put on these kinds of shoes in the activities from the Court along the way. This really is the originality from the Jordan of here!So make certain you are attempting to select what you would like in several footwear, have fun with this important decision, since these boots are utilized more for the basketball all season. The Jordan footwear will also be these really lightweight and comfy for your ft.

Posted by: agfa a | May 31, 2012 8:58 AM


celebrex without prescription plavix without prescription paxil without prescription norvasc without prescription nolvadex without prescription nexium without prescription neurontin without prescription lopressor without prescription effexor without prescription protonix without prescription prevacid without prescription premarin without prescription zanaflex without prescription zyprexa without prescription

Posted by: lance f | May 29, 2012 12:25 PM


Decorative painting and landscape painting, art paintings for sale have a high artistic level and ornamental value.abstract art paintings We can Glimpse from the style of beauty and local culture, experience the exoticcustoms.art deco paintings Composition layout of the whole painting light and dark has caused exude amood, ie,art paintings dense and thick, colorful, gleaming, makes the whole picture and intricate,beautiful, give a sense of the people relaxed and happy. http://www.artforsalecheap.com/

Posted by: jiade j | May 14, 2012 3:10 AM


The NBA announced the first annual awards. NBA Shop The SAN Antonio spurs coach gregg popovich won NBA2011-12 season of "the best coach". Tracy Mcgrady Shoes Gregg popovich led the spurs veterans staged the lockout-shortened season "miracles", Zoom Kobe 7 Shoes in the western conference amongst the elite is obtained in the top of the charts the regular season record. kobe zoom 6 At the same time, the spurs also created the continuous 15 season NBA playoff record of march.

Posted by: jiade j | May 14, 2012 3:09 AM


Nowadays, Cheap Jordan Shoes also happen to be very versatile. So even if you purchased a gleaming new ultra Air Jordans for rowing, your can also use it for campus wear or hanging out. Have Jordan Retro 13 in the family whom you want to bring along to the fairways? They might take to the naturally geared up in quality Jordans 13 with a precise fit, enhanced grip, stability and comfort. Air Jordan 1 will get a kick donning the coolest new versions of Air Jordan 11 with a lightweight feel and extreme stability level when Air Jordan 23 with friends or schoolmates. http://www.discountairjordans13.com/

Posted by: feg g | May 13, 2012 8:29 PM


Michael Jeffery Cheap Jordans, this name besides is in the basketball court the forever god, he also has other spot forever to be unable to substitute, that is his 23 pair of Cheap Jordan Shoes, any star player has not been able to leave its right Nike Air Yeezy, what in the active duty player the signature Air Jordan Shoes are most is Iverson, on the season is also the 12th generation. But in NBA, worships Nike Air Jordan the player to be too numerous to cite individually, below brings for you with the Jordan Retro 11 concerned ten big giant stars. The kopeck in terminates an agreement after Adidasi, once had had the stage which puts on Jordan Retro 11 randomly, but the Jordan shoes appear in his under foot the frequency is highest. Regardless of being Cheap Air Jordans 3 generation, 6 generation, 8 generation, 11 generations is 12 generations, once followed the kopeck to go on an expedition. But wins the championship when this year attends the talk show program Air Jordan Shoes afterward, the kopeck under foot is also the Jordan 11 generation which a pair Nike Air Jordan blue-black matches colors. In university time, although Iverson in field scenery infinite, but is also unable to improve the family aspect in distress. Iverson's great mother to let the son be more formidable in the field, does Jordan Retro 11 not hesitate to fall behind the electrical bill, has bought one pair of AJ11 generation to Iverson, but Iverson has not disappointed mother's expectation, enters NBA by the foremost person in the field Xiu's status Cheap Jordan Shoes. As soon as although James entered the alliance to have his signature Air Jordan Retro shoes, but this picture above James under foot was actually pair of Jordan Retro. James's number is also 23, he does not cover himself regarding Jordan's respect. Jordan delivered wheat peduncle Jordan Retro 11 the story already was enjoys great popularity, although Jordan has lost to the magic which Nike Air Yeezy Mai Di commanded troops, but he after the competition ended, signature's Nike Air Yeezy will give the wheat peduncle, above has Jordan Retro written "is enjoying the challenge, the good luck and the health".

Posted by: dsfsd d | May 9, 2012 10:56 PM


Michael Jeffery Cheap Jordans, this name besides is in the basketball court the forever god, he also has other spot forever to be unable to substitute, that is his 23 pair of Cheap Jordan Shoes, any star player has not been able to leave its right Nike Air Yeezy, what in the active duty player the signature Air Jordan Shoes are most is Iverson, on the season is also the 12th generation. But in NBA, worships Nike Air Jordan the player to be too numerous to cite individually, below brings for you with the Jordan Retro 11 concerned ten big giant stars. The kopeck in terminates an agreement after Adidasi, once had had the stage which puts on Jordan Retro 11 randomly, but the Jordan shoes appear in his under foot the frequency is highest. Regardless of being Cheap Air Jordans 3 generation, 6 generation, 8 generation, 11 generations is 12 generations, once followed the kopeck to go on an expedition. But wins the championship when this year attends the talk show program Air Jordan Shoes afterward, the kopeck under foot is also the Jordan 11 generation which a pair Nike Air Jordan blue-black matches colors. In university time, although Iverson in field scenery infinite, but is also unable to improve the family aspect in distress. Iverson's great mother to let the son be more formidable in the field, does Jordan Retro 11 not hesitate to fall behind the electrical bill, has bought one pair of AJ11 generation to Iverson, but Iverson has not disappointed mother's expectation, enters NBA by the foremost person in the field Xiu's status Cheap Jordan Shoes. As soon as although James entered the alliance to have his signature Air Jordan Retro shoes, but this picture above James under foot was actually pair of Jordan Retro. James's number is also 23, he does not cover himself regarding Jordan's respect. Jordan delivered wheat peduncle Jordan Retro 11 the story already was enjoys great popularity, although Jordan has lost to the magic which Nike Air Yeezy Mai Di commanded troops, but he after the competition ended, signature's Nike Air Yeezy will give the wheat peduncle, above has Jordan Retro written "is enjoying the challenge, the good luck and the health".

Posted by: dsfsd d | May 9, 2012 10:54 PM


In particular, products from coach factory outlet with leather design are fashionable, handmade,leading the wave of American pop.It with simple,durable and unique style to win consumers.The coach factory online make no guarantees to their inventory so you may lose a really great deal or style simply because you did not act.To find a Coach Bag of any size, color or style to fit your needs at the coach factory outlet online is a very necessary thing for every beautiful woman.

Posted by: yan l | May 4, 2012 9:31 PM


mulberry uk create super shock many of the style with may completely different role.It has however getting confirmed how they insure the fact that merchandise you purchase will genuinely be reliable mentor product to mulberry uk outlet.

Posted by: online4426 o | April 23, 2012 1:31 AM


Fashion shows and ysl shoes the fashion ysl shoes sale weeks are ysl sale not the only discount ysl shoes fashion events cheap louboutin shoes in the fashion Mulberry Factory Shop world. The Mulberry Outlet public appearances Mulberry Bags of the rich Mulberry Outlet Online and famous Mulberry Bayswater Bags and the popular red Mulberry Alexa Bags carpet aka award show functions are the Mulberry Wallets one which set the fashion temperature high not only among the tabloids but also the fashionistas. Mulberry Purses Kate Winslet was not just appreciated for the Oscars; her YSL gown got everyone's Mulberry Factory Outlet Shop attention. So finally we know how to set a trend and who can set it. Besides the real Mulberry Bags Outlet clothes bags and footwear there is a whole market out there for YSL tribute replica.

Posted by: qian d | April 16, 2012 8:47 PM


Well, really. It's been a while. I wonder about the list. Regards, jamesweb designer professional | web design new york

Posted by: james b | April 9, 2012 12:16 PM


Michael Kors Handbags is classic and perfect for all occasions. logo-engraved lock accents and a top-handle style give Michael Kors unique detail. Featuring an adjustable shoulder strap and multiple pockets, this tote bag by Michael Kors Outlet makes it easy to get from here to there with all your necessities in tow.Michael Kors Outlet Online store save up to 80% off. Over $160 per order,enjoy extra 3% off. Free Shipping to every countries.

Posted by: fiona258 f | March 20, 2012 4:32 AM


cheap air Max 2011 Im glad that cheap air max 2012 I was able cheap air Max 360 to move you. Im flattered. cheap air Max 87 That really means cheap air Max 90 a lot. We put some work into that, so Im glad it came across. Its what we all strive for.

Posted by: airmax s | March 7, 2012 3:34 AM


The brand names who specialise in just Moncler Mens Coats are growing in popularity and noteriety, and New Moncler Down Jackets are widely offered on the web and in selected large Moncler Women Jackets. 1 well recognized French brand name is 'Weekend a la Mer', and they offer you a smaller but stylish and sophisticated Moncler Mens Jackets. Being a French brand Discount Moncler Mens they certainly offer both warmer selections for the Winter via to Spring months, as well as http://www.monclermenstore.com/.

Posted by: feg g | January 4, 2012 7:59 PM


Mulberry Bags are hot sale with free shipping in Mulberry Outlet Store. Welcome you come here,come our uggs outlet stores. ugg outlet stores is the best stores of ugg boots outlet,offer all kinds of cheap ugg sale. Ugg outlet store sales various of discount uggs products,including boots, sandals, slipper, welcome to ugg outlet store to buy high quality products. Buy Mulberry Bags enjoy top fashion and save up to 70% off now. Discount Mulberry bags sale,Mulberry Outlet.Buy Mulberry bags from our Mulberry factory shop outlet! 70%Off Mulberry Bags, Mulberry Sale, Mulberry Purses, Mulberry Alexa, Mulberry Bayswater,Top Quality Free Shipping

Posted by: zzz f | December 22, 2011 7:14 PM


Mulberry Bags are hot sale with free shipping in Mulberry Outlet Store. Welcome you come here,come our uggs outlet stores. ugg outlet stores is the best stores of ugg boots outlet,offer all kinds of cheap ugg sale. Ugg outlet store sales various of discount uggs products,including boots, sandals, slipper, welcome to ugg outlet store to buy high quality products. Buy Mulberry Bags enjoy top fashion and save up to 70% off now. Discount Mulberry bags sale,Mulberry Outlet.Buy Mulberry bags from our Mulberry factory shop outlet! 70%Off Mulberry Bags, Mulberry Sale, Mulberry Purses, Mulberry Alexa, Mulberry Bayswater,Top Quality Free Shipping

Posted by: zzz f | December 22, 2011 7:14 PM


Mulberry Bags are hot sale with free shipping in Mulberry Outlet Store. Welcome you come here,come our uggs outlet stores. ugg outlet stores is the best stores of ugg boots outlet,offer all kinds of cheap ugg sale. Ugg outlet store sales various of discount uggs products,including boots, sandals, slipper, welcome to ugg outlet store to buy high quality products. Buy Mulberry Bags enjoy top fashion and save up to 70% off now. Discount Mulberry bags sale,Mulberry Outlet.Buy Mulberry bags from our Mulberry factory shop outlet! 70%Off Mulberry Bags, Mulberry Sale, Mulberry Purses, Mulberry Alexa, Mulberry Bayswater,Top Quality Free Shipping

Posted by: zzz f | December 22, 2011 7:13 PM


One classic type of Moncler Women is the windbreakers. These type of men's coats are wearable for all types of seasons. Moncler Winter Jacketst is made of fabric that could stand through time and it belongs to the category of light men's Moncler Boots. During winter season, these type of Moncler Coats Women could protect you from the chilling wind outside and at the same time warmth your body. And Moncler Jackets Men could also be wear during winter since it is made of lightweight materials which is warm for you to bear Moncler Coats Women.

Posted by: patrick2009 l | December 18, 2011 8:56 PM


The best men's Cheap Moncler coats are fashionable, affordable and keep you warm. Make sure you shop around when looking for your Moncler Vest Sale and you will find one that fits the Moncler Jackets UK. I have owned several throughout the years and have been pleased with every Moncler Mens Jackets purchase decision I have made. With an ever increasing number of designers Moncler Womens Jackets entering the market it is easier and easier to find a great pea coat for Moncler Coats Online.

Posted by: patrick2009 l | December 18, 2011 8:53 PM


Low Price Uggs On Sale, quality guarantee fashion Uggs Sale, safe shippment uggs on sale. Welcome to buy to have a warm winter and be fashion in winter. UGGs Outlet, UGGs On Sale, popular as well as good quality UGG Sale Online. Cheap ugg boots sale here,we promise you can get ugg boots at the lowest price,be quick! UGGs will company you all the winter. To keep warm is also important for men and kids. UGGs add warm to your feet and your heart.

Posted by: zzz f | December 5, 2011 11:58 PM


With a chic and unique design, New Moncler Down Jackets are also a viable option for you gentlemen. You can pair them with Moncler Mens Coats, a coloured scarf and a pair of moccasins that are terrific for a movie night. Moncler Women Jackets have that fluffy feel which transforms them in a highly comfortable Moncler Mens Jackets item. One Moncler Online Store cannot ignore their miraculous property of preserving the heat and bestowing upon the body the type of Discount Moncler Mens that is so indispensable in the http://www.monclermenstore.com/.

Posted by: feg g | November 25, 2011 11:13 PM


Grimes the unit dvd before the oc dvd long the shield dvd studies the oz dvd that wild wild west dvd he's not the west wing dvd only west wing dvd in this the x files dvd suburban the wire dvd hellscape true blood dvd strewn two and a half men dvd with weeds dvd rotting will and grace dvd corpses, xena dvd soldiers beatles remastered dvd apparatus the beatles dvds and, of 007 dvd course, james bond dvd "walkers," 24 dvd the undead 30 rock dvd whose alias dvd chomp ally mcbeal dvd turns big love dvd humans bones dvd into brothers and sisters dvd bloodthirsty boston legal dvd zombies. http://boxsetszone.com

Posted by: ASDA A | October 5, 2011 10:10 PM


"I thought I would have made a great classic chanel handbag president," Pawlenty said. "I do believe we're going to have a very good candidate chanel bags online who is going to beat Barack Obama."He didn't immediately endorse a cheap chanel handbags candidate.Bachmann was quick to chanel quilted bag praise him, perhaps mindful of the need to broaden her appeal and reach his backers, who span the ideological spectrum.

Posted by: sdsd s | August 19, 2011 3:23 AM


His blue-collar upbringing offered him a natural rapport with herve leger dresses middle-class America. He governed as a fiscal hard-liner in a left-leaning state, winning his karen millen dresses second term in a year when Republicans elsewhere got drubbed. He made inroads with herve leger bandage dress the right crowds and assembled an all-star cast of advisers with loads of karen millen outlet presidential campaign experience.Pawlenty ran a traditional operation. In the lead-up to his campaign, he spread checks around to local politicians in key states through a political action committee while putting a heavy focus on small-scale events in places such as Iowa and chanel dress New Hampshire.

Posted by: sdsd s | August 19, 2011 3:10 AM

Lee Barney

Lee Barney served as editor of Money Management Executive from 2002 to 2010. Previously, at United Media’s Wall Street & Technology magazine and Risk/Waters Information Services, she covered financial IT. For TheStreet.com, she wrote the daily “Meet the Street” column covering a broad spectrum of market-moving events. Lee began her career as a reporter in Tokyo with The Japan Times and was executive editor of Spotlight magazine.