Massachusetts Attorney General Tom Reilly rejected a claim by Peter Scannell, the former Putnam Investments employee who alerted regulators to market-timing activities at the firm in 2003, for 30% of the fines Putnam ultimately paid to the state. Mr. Scannell claims he is due the money under the provisions of the Massachusetts False Claims Act. David R. Kerrigan, chief of the state's government bureau, sent a letter Tuesday to Robert C. Autieri, Mr. Scannell's attorney, noting the "important role" Mr. Scannell played in the state's case against Putnam, but said "the facts giving rise to your claim do not fall within the statute under which you seek payment."
In a telephone interview, Mr. Autieri said that is unlikely to be the "final word" on the matter. The law in question is "a relatively new statute" and it's "more than likely" that Mr. Scannell will turn to the state courts for an "ultimate interpretation," he said.