Franklin Resources (BEN) Unit Wamco to Pay $100 Million SEC Fine Over Alleged Cherry-Picking

Western Asset Management Co (Wamco), a subsidiary of Franklin Resources Inc (NYSE: BEN), agreed to pay a $100 million civil penalty to settle U.S. Securities and Exchange Commission charges tied to an alleged cherry-picking scheme by former co-Chief Investment Officer Kenneth Leech, the SEC said on June 5, 2026. Leech, who has pleaded not guilty to related criminal charges in New York, is accused of improperly allocating trades. Wamco did not admit wrongdoing. Franklin Resources stated in a regulatory filing that the settlement was a “business decision” to avoid protracted litigation and resolves investigations by both the SEC and the U.S. Department of Justice.