Two ex-Putnam officials agree to settle with SEC

Two former Putnam Investments executives agreed to pay a combined $135,000 to settle charges they tried to cover up a trading error that cost investors $4 million, regulators said. Neither of the executives, Karnig H. Durgarian Jr. and Ronald B. Hogan, admitted or denied wrongdoing as part of the settlement, according to a Securities and Exchange Commission press release.

The two were among a group of former Putnam executives the SEC charged in 2005 over their handling of investments for the retirement plan of Cardinal Health Inc. Investigators said that a delay by Putnam to transfer Cardinal assets into several mutual funds in 2001 cost the plan about $4 million in market appreciation. The agency said the Putnam executives then tried to conceal the mistake by changing records or shifting losses.

Durgarian was chief operating officer of Putnam's transfer agent unit, Putnam Fiduciary Trust Co., while Hogan was a unit vice president. A case against another former Putnam executive, Donald F. McCracken, is pending, the SEC said. An attorney for McCracken, Gary S. Matsko, said he denies wrongdoing. Attorneys for Durgarian and Hogan didn't return messages yesterday.

ROSS KERBER