SEC Moves for Final Judgment Against Former Western Asset Co-CIO Ken Leech in Cherry-Picking Action

The SEC has filed for entry of a consent final judgment against Stephen Kenneth Leech II, former co-CIO of Western Asset Management Company, over cherry-picking allegations.

The U.S. Securities and Exchange Commission (SEC) has moved for the 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. The regulatory action addresses allegations surrounding an improper trade allocation scheme, commonly referred to as cherry-picking. In such schemes, favorable trades are disproportionately steered to preferred accounts while less profitable or losing trades are allocated to other client portfolios. The proposed consent judgment marks a significant development in the regulator's enforcement efforts to protect investors and maintain integrity in institutional investment management and advisory practices.