The SEC has moved for a final judgment against Ken Leech, former co-CIO of Western Asset, for a multi-year cherry-picking scheme, seeking a $3 million penalty and an officer-and-director bar.
Why it matters. Investment advisers are required to act in the best interest of their clients, and this case highlights the consequences of failing to do so.
The Securities and Exchange Commission today moved for entry of a final judgment by consent against Stephen Kenneth Leech II, the former co-chief investment officer of registered investment adviser Western Asset Management Company LLC, whom the SEC previously charged with a multi-year cherry-picking allocation scheme.
Without admitting the allegations in the SEC’s complaint, Leech consented to entry of a final judgment, subject to court approval, that would order him to pay a $3 million penalty, impose an officer-and-director bar and permanently enjoin him from violating antifraud provisions of federal securities laws. Leech also agreed to a forthcoming associational bar against him.
Leech consented to entry of a final judgment, subject to court approval, that would order him to pay a $3 million penalty
permanently enjoin him from violating antifraud provisions of federal securities laws
ordering the firm to pay a $100 million civil penalty
In June 2026, the Commission instituted settled public administrative proceedings against Western Asset, ordering the firm to pay a $100 million civil penalty
