Administration April 2, 2004
Franklin Resources Charged With Improper Trading
February 4, 2004 (PLANSPONSOR.com)Mutual fund
company Franklin Resources and a former Franklin official,
William Post, were charged Wednesday by Massachusetts
securities regulators with fraud for their role in an
improper trading scheme.
Reported by Alison Cooke
Post and Franklin Resources are charged with allowing a wealthy investor from Las Vegas engage in market timing in Franklin mutual funds in exchange for the investor putting $10 million into Franklin’s hedge funds, Reuters reported (See Franklin Templeton Finds Two Market Timing Problems ).
Regulators also want Franklin to return profits made illegally to shareholders and pay a fine.
Charges were also levied against Franklin Advisers Inc., Franklin/Templeton Distributors Inc., and Templeton/Franklin Investment Services Inc., of which Franklin Resources is the parent company.