June 5 (Reuters) – Western Asset Management Co, a unit of Franklin Resources, will pay a $100 million civil penalty to resolve U.S. Securities and Exchange Commission charges related to former co-chief investment officer Kenneth Leech’s alleged cherry-picking scheme, the regulator said on Friday.
Leech has pleaded not guilty to related criminal charges in New York.
Wamco, as his former firm is commonly known, did not admit wrongdoing.
In a regulatory filing, Franklin said Wamco agreed to settle as a “business decision” to avoid prolonged litigation, and that the accord ends probes of the asset manager by the SEC and the U.S. Department of Justice.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)
Comments