Defendant Name: Western Asset Management Company, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Franklin Resources Inc.
SIC Code: 6282
CUSIP: 35461310

Initial Case Details

Legal Case Name In the Matter of Western Asset Management Company, LLC
First Document Date 05-Jun-2026
Initial Filing Format Administrative Action
File Number 3-22646
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act; Failure to supervise within the meaning of Section 203(e)(6) Advisers Act

Resolutions

First Resolution Date 05-Jun-2026
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

IA-6969 05-Jun-2026 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On June 5, 2026, the SEC instituted settled administrative and cease-and-desist proceedings against Western Asset Management Company, LLC, stating: "These proceedings arise out of the conduct of Western Asset, an investment adviser registered with the Commission, in relation to the actions of its former co-chief investment officer (“CIO”), Stephen Kenneth Leech II (“Leech”). In November 2024, the Commission charged Leech in a litigated district court action with engaging in a “cherry-picking” scheme from January 2021 through October 2023 (the “Relevant Period”), by disproportionately allocating hundreds of millions of dollars in trades with net realized and unrealized first-day gains to certain portfolios (the “Favored Portfolios”) and hundreds of millions of dollars in trades with net realized and unrealized first-day losses to other portfolios (the “Disfavored Portfolios”)."
IA-6969-s 05-Jun-2026 Administrative Summary
SEC Institutes Settled Order Against Western Asset for Violations Relating to Former co-CIO's Alleged Cherry-Picking Scheme
On June 5, 2026, the SEC stated that: "[It] settled charges against Pasadena‑based investment adviser Western Asset Management Company, LLC for failing to take reasonable steps to detect and prevent its former co-Chief Investment Officer’s alleged cherry-picking scheme. Western Asset agreed to pay a$100 million civil penalty in connection with the settlement."