Franklin Says DOJ to Resolve Wamco Probe Without Criminal Charge

Franklin Resources Inc. said the US Department of Justice is preparing to resolve an investigation into its fixed-income unit, Western Asset Management Co., without criminal charges following the government’s allegations of securities fraud against its former star manager, Ken Leech.

The Justice Department informed the firm on Dec. 13 that it’s preparing to resolve the investigation through a disposition but needs more time, Franklin said in a filing Monday.

Ken Leech, Wamco’s former co-CIO.

Photographer: Yuki Iwamura/Bloomberg

Clients have pulled more than $100 billion from Western Asset, once one of the largest bond firms in the US, since the middle of last year, when Franklin ...