SEC Fines Ex-Star Bond Manager Leech $3M in Cherry-Picking Case
BEN sits 53% above its 52-week low of $21.105.
Summary
The SEC fined former Western Asset Management bond manager Kenneth Leech $3 million to settle civil charges tied to his cherry-picking scheme, which allegedly involved over $600 million in trades from 2021 to 2023. This follows Wamco's $100 million civil penalty in June and Leech's guilty plea to obstruction, with sentencing guidelines of 6-12 months. The settlement, pending court approval, would return $103 million to harmed investors. The case adds to regulatory scrutiny of Franklin Resources' Western Asset unit, though the company has not admitted wrongdoing.
At the time of this announcement, BEN was trading at $32.26 on NYSE in the Finance sector, with a market capitalization of approximately $16.5B. The 52-week trading range was $21.11 to $36.28. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.