The U.S. Securities and Exchange Commission said that between January 2021 and October 2023, Leech disproportionately allocated better performing trades to favored portfolios, and worse performing trades to other portfolios.
Leech also faces related criminal charges from the U.S. Attorney’s office in Manhattan, the SEC said.
Lawyers for Leech did not immediately respond to requests for comment.
The U.S. attorney’s office did not immediately respond to a similar request.
Clients have pulled tens of billions of dollars from Wamco in the last few months, after Franklin announced that authorities were investigating Leech.
Persons:
Kenneth Leech, Leech, Legg Mason, Franklin
Organizations:
Western Asset Management, U.S . Securities, Exchange Commission, SEC, Franklin Resources
Locations:
Manhattan, U.S