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

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The U.S. 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, in connection with a cherry-picking scheme alleged to have occurred from at least January 2021 through October 2023. Without admitting the allegations, Leech consented to a judgment, subject to court approval, requiring him to pay a $3 million penalty, imposing an officer-and-director bar, permanently enjoining him from violating antifraud provisions of federal securities laws, and agreeing to a forthcoming associational bar. The SEC stated that in June 2026 it had instituted settled proceedings against Western Asset ordering a $100 million civil penalty and establishing a Fair Fund, and noted that, combined with the Leech resolution if approved, $103 million would be returned to harmed investors. The SEC also stated that in June 2026 Leech pleaded guilty in the U.S. District Court for the Southern District of New York to obstruction of justice charges, with sentencing to take place in the coming weeks.

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