Home / Crime and Justice / Bond Manager Admits Obstructing Probe
Bond Manager Admits Obstructing Probe
13 Jun
Summary
- Former star bond manager pleaded guilty to obstructing an SEC probe.
- He admitted to lying about his trade allocation intentions.
- The firm agreed to a $100 million penalty for supervision failures.
Kenneth Leech, a former prominent bond manager at Western Asset Management Co (Wamco), pleaded guilty on Friday, June 12, 2026, to obstructing an investigation. This plea averts a trial concerning allegations of a "cherry-picking" scheme. Leech admitted to a single count of obstructing a U.S. Securities and Exchange Commission proceeding, foregoing charges of fraud related to an alleged $600 million scheme.
Prosecutors accused Leech of providing false testimony to the SEC in March 2024, denying he had specific allocations in mind when making trades. The former co-chief investment officer now faces a recommended prison term of six to 12 months. His sentencing is anticipated in September 2026.
Wamco, a part of Franklin Resources, agreed on June 5, 2026, to a $100 million civil penalty to resolve SEC charges. The firm admitted no wrongdoing but was cited for failing to adequately supervise Leech. The probes led to significant outflows for Wamco, with assets under management dropping by 40% to $228.9 billion by the end of March 2026.
