Defendant Name:
Western Asset Management Company, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Franklin Resources Inc.
SIC Code:
6282
CUSIP:
35461310
Document Reference:
IA-6969
Document Details
Legal Case Name
In the Matter of Western Asset Management Company, LLC
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
05-Jun-2026
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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”)."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Remedial Acts or Efforts Before the Resolution
Fair Funds
Monetary Penalties:
Civil Penalty
Individual:
$100,000,000.00
Shared:
