Kenneth "Ken" Leech, chief investment officer at Western Asset Management unit of Legg Mason Inc., speaks during the UBS CIO Global Forum at the Beverly Wilshire Hotel in Beverly Hills, California, on June 28, 2016. Photo: Patrick T. Fallon/BloombergFormer Wamco Exec Charged With $600M 'Cherry-Picking' Fraud
Ken Leech faces charges of investment adviser fraud, securities fraud, commodity trading adviser fraud and commodities fraud, as well as a charge of making false statements, which collectively expose him to a potential 65-year prison sentence.
November 26, 2024 at 02:29 PM
3 minute read
A former Wamco executive engaged in a “cherry-picking” scheme that saw him allocating $600 million worth of winning trades to favored clients, and $600 million worth of losses to disfavored ones, federal prosecutors in New York said.
An indictment against Kenneth Leech, 70, was unsealed late Monday, with U.S. Attorney Damian Williams of the Southern District of New York charging Leech with defrauding the institutional and retail investors who had placed their savings and pension plans under his care. Those victims were unaware that Leech was causing them losses to prop up his “marquee investment strategy,” according to Williams’ office.
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