Franklin Resources Inc. said it received subpoenas from two federal prosecutors, in addition to putting three employees on administrative leave related to trading of mutual-fund shares.
The No. 4 U.S. mutual fund company, the latest firm to be enmeshed in an industrywide scandal over improper trading, said on Monday in a filing with the U.S. Securities and Exchange Commission that it received subpoenas from the U.S. Attorney for the northern district of California and for Massachusetts.
In October, Franklin announced it received subpoenas from the U.S. Securities and Exchange Commission and New York Attorney General Eliot Spitzer's office over alleged improper fund trading practices.
The San Mateo, California-based company, which manages the Franklin and Templeton mutual funds, disclosed on Monday it found some instances of frequent trading of certain funds by a few current or former employees in their own 401(k) retirement accounts. It said it placed two officers and a trader on administrative leave as a result.