Business
DOJ to Drop Probe Into Franklin Templeton Unit Over ‘Cherry-Picking’ Trades
The Justice Department notified Western Asset Management that it plans to resolve its investigation without filing any charges against the investment firm, Wamco said Monday.
The company has been under scrutiny since authorities last year accused longtime investment chief Kenneth Leech of running a fraudulent trading scheme that favored some clients over others. The bond investor is awaiting trial on several felony fraud charges, and retired this year after being placed on leave.
Franklin Templeton acquired Wamco in 2020 in a deal that granted the Pasadena-based bond manager a significant amount of autonomy. Franklin shares took a hit as clients pulled tens of billions of dollars from Wamco after the Leech news, but have since stabilized.
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