Western Asset Management Settles SEC Case for $100 Million

By EC Assets · Published 5 June 2026

Western Asset Management Co. has finalized a $100 million settlement with the Securities and Exchange Commission (SEC). The resolution addresses an investigation into the firm's trading practices. Western Asset is a unit of Franklin Resources. The settlement was reached on June 4, 2026. Western Asset Management will pay a $100 million civil penalty. The SEC censured Western Asset as part of the agreement. The investigation focused on trading activities. Reports indicated the probe was related to "leech trades" or trade allocations involving Ken Leech. Franklin Resources' subsidiary, Western Asset Management, deposited the $100 million civil penalty into an escrow account. Franklin Resources stock rose on reports of the impending SEC settlement. The stock jumped 6% on Thursday, hitting a 52-week high. This article is intended for informational purposes only. It does not constitute investment advice.