SEC seeks final judgment against Ken Leech

Leech consented to the judgment without admitting the allegations in the SEC’s November 2024 complaint.

The judgment, subject to court approval, would order him to pay a $3 million penalty, impose an officer-and-director bar and permanently enjoin him from violating antifraud provisions.

The complaint alleged that from at least January 2021 through October 2023, Leech placed trades and delayed allocations to observe price movements.

He allocated gains to favored portfolios and losses to disfavored ones.

In June 2026, the SEC instituted settled proceedings against Western Asset, ordering the firm to pay a $100 million civil penalty and establishing a Fair Fund.

“Together, the resolution with Leech, if approved by the court, and the SEC’s prior settlement with Western Asset will return $103 million and provide meaningful relief to harmed investors,” said Brent Wilner, Associate Director of the SEC’s Los Angeles Regional Office.