A former CFO and treasurer of Legg Mason's fixed-income funds, Frances Guggino, has been banned from the securities industry by the SEC and ordered to pay a penalty of $15,000 for altering the books at a mutual fund in 2010. Guggino resigned in June 2010 during an internal investigation into the matter.
Guggino falsified documents regarding funds that Legg Mason acquired when it bought Citigroup's asset management business in 2005. Legg Mason was required to advance a distribution to mutual funds owed in a 2005 SEC case against Smith Barney Family of Funds which used Citicorp Trust Bank as a transfer agent. However, Guggino failed to ensure that advances were made to Legg Mason Partners Capital Preservation II Fund and the Legg Mason Partners Variable Government Portfolio before their liquidation as required.
She then fabricated confirmation of the advance payments, which totaled $116,000, as well as e-mails and a copy of the fund's trial balance.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
