Defendant Name:
Western Asset Management Company
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Legg Mason, Inc.
SIC Code:
6282
CUSIP:
52490110
Document Reference:
IA-3763
Document Details
Legal Case Name
In the Matter of Western Asset Management Company
Document Name
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
Document Date
27-Jan-2014
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On January 27, 2014, the SEC instituted settled administrative and cease-and-desist proceedings against Western Asset Management Company. According to the SEC: "These proceedings arise out of an investment adviser's failure to disclose its violation of an issuer-imposed restriction prohibiting plans subject to Part 4 of Subtitle B of Title 1 of the Employee Retirement Income Security Act ('ERISA plans') from participating in a private placement. Respondent was aware no later than October 2008 that it had breached this offering restriction by allocating the security to ERISA accounts that it managed, yet failed to take prompt corrective action, contrary to its disclosed error correction policy. Specifically, Respondent did not notify most of its affected ERISA clients until August 2010, more than a year after Respondent had liquidated the securities out of all client accounts."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Various undertakings
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Disgorgement
Individual:
$8,111,582.00
Shared:
Civil Penalty
Individual:
$1,000,000.00
Shared:
Pre-Judgment Interest
Individual:
$1,508,810.00
Shared:
