Wamco to Pay $100 Million in SEC Settlement Over Leech Trades

Western Asset Management Co. reached a $100 million settlement with the Securities and Exchange Commission to resolve an investigation related to trading practices of its onetime star manager Ken Leech.

“Western Asset did not take reasonable steps to ensure that Leech’s trading practices complied with the firm’s policies and procedures, and failed reasonably to supervise Leech,” the SEC said in a filing on Friday.

Wamco parent Franklin Resources Inc. has sought to move on from Leech, who has pleaded not guilty in a separate Justice Department case. The former co-chief investment officer at Wamco, Leech is charged with steering ...