SEC Seeks Final Judgment Against Former Western Asset Co-CIO Ken Leech in Cherry Picking Case

The Securities and Exchange Commission moved for entry of a final judgment by consent against Stephen Kenneth Leech II, former co-chief investment officer of Western Asset Management Company LLC, regarding a multi-year cherry-picking allocation scheme alleged from at least January 2021 through October 2023. Leech consented to a $3 million penalty, an officer-and-director bar, and a permanent injunction against violating federal securities laws, without admitting the allegations. This action, combined with the June 2026 settlement where the Commission ordered Western Asset to pay a $100 million civil penalty and establish a Fair Fund, is expected to return $103 million to harmed investors.