The former Putnam Investments employee, who blew the whistle on the Boston-based fund giant's market-timing practices, has filed a lawsuit seeking 30 percent of the firm's $50 million fine, according to a report in the Boston Herald.
Scannell believes he is due $15 million under a state law passed in 2000 that lets whistleblowers participate in judgments against the firms they have fingered. He has filed suit in Suffolk Superior Court against the Commonwealth of Massachusetts and against the state's attorney general Tom Reilly, who denied his compensation request in June.
Reilly says Scannell failed to take the proper steps to qualify as a whistleblower. Further, the False Claims Act of 2000 was intended to fight fraud against the state, not against private companies or investors.
Whether Scannell gets a bag of Benjamins for his efforts is now in the hands of the courts.
In our 18th annual Broker Report Card survey, wirehouse FAs say they are fed up with management ruining their excellent franchises and platforms. Will the great advisor diaspora begin?
Cannon’s Concepts For Professionals: A Complete Library of Essential Financial Concepts
This reference book was updated for 2008 and now contains over 900 pages of information on essential financial concepts and wealth management strategies for your work with wealthy clients. The book not only contains brief summaries of each topic, but it also contains many useful diagrams and charts that can be used with clients when explaining difficult financial concepts. The information in this book meets current FINRA/NASD guidelines....
