Leadership and Companies
SEC Seeks $3 Million Penalty, Bar for Former Western Asset CIO
The SEC sought court approval of penalties against former Western Asset co-CIO Ken Leech over an alleged cherry-picking scheme.
What happened
The SEC moved for a consent judgment against former Western Asset co-CIO Stephen Kenneth Leech II, who allegedly delayed trade allocations to direct first-day gains to favored portfolios and losses to disfavored ones. Subject to court approval, he would pay $3 million, face an officer-and-director bar, and accept a permanent antifraud injunction. He did not admit the allegations.
Why it matters
The proposed judgment, combined with Western Asset’s earlier $100 million settlement, would return $103 million to affected investors and impose major penalties on the former executive.
Source: U.S. SEC Press Releases