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-3762
Document Details
Legal Case Name
In the Matter of Western Asset Management Co.
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, and Sections 9(b) and 9(f) of the Investment Company 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: "From 2007 through 2010, Western, a registered investment adviser to various clients, including registered investment companies ('RICs'), arranged dealer-interposed cross trade transactions in which counterparty dealers purchased fixed-income securities from certain Western advisory client accounts, and then resold the same securities to certain other Western advisory client accounts. Because many of these cross trades were effected between two RIC client accounts or between RIC and RIC-affiliated client accounts, Western aided and abetted and caused certain of its advisory clients unwittingly to violate Sections 17(a)(1) and (2) of the Investment Company Act. In addition, the manner in which Western effectuated the cross trades resulted in undisclosed favorable treatment of certain of its advisory clients over others, and, as a result, Western violated Section 206(2) of the Advisers Act."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Various undertakings
Monetary Penalties:
Civil Penalty
Individual:
$1,000,000.00
Shared:
