Franklin Resources Charged With Improper Trading

February 4, 2004 (—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.

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.