It appears Franklin Resources ( BEN) may catch at least one break in the mutual fund investigation.

In a regulatory filing, the San Francisco-based fund company said the Securities and Exchange Commission "no longer intends to recommend" filing civil charges against Gregory Johnson, the company's president and co-chief executive.

Several weeks ago, Franklin, which manages the popular Franklin/Templeton family of funds, said the SEC was preparing to file civil charges against Johnson, as well as against the firm. The company has said the SEC staff believes it has found evidence of improper trading in some of Franklin's funds.

In the filing, Franklin offered no explanation for the SEC's change of heart about charging Johnson. The company said it's still talking to the SEC about a possible resolution of the investigation.

Last month, Massachusetts securities regulators charged the parent company of the Franklin/Templeton funds with fraud in a market-timing scheme involving Las Vegas investor Daniel Calugar, who has emerged as one of the central players in the mutual fund trading scandal.

In December, the SEC charged the former tax attorney with generating $175 million in profit from making improper trades in funds managed by Alliance Capital ( AC) and Massachusetts Financial Services, a division of Sun Life Financial ( SLF).

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