3 sources·Business

Former Bond Fund Manager Kenneth Leech Charged in $600 Million Fraud Scheme

Kenneth Leech faces criminal and civil charges for allegedly favoring clients in a fraudulent trading scheme at Western Asset Management.

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Updated: Nov 25th, 2024, 10:16 PM ET

Summary

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Kenneth Leech, the ex-co-chief investment officer of Western Asset Management, has been criminally charged for allegedly running a fraudulent 'cherry-picking' scheme. Between January 2021 and October 2023, he favored certain client portfolios by allocating them profitable trades while assigning poorer trades to others. Leech faces four counts of fraud and one false statement count from U.S. prosecutors, alongside SEC civil charges. Authorities indicated that clients were misled, and significant withdrawals from Western Asset Management followed the investigation's announcement.

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