SEC Seeks Final Judgment in Cherry-Picking Case: $103 Million to Be Returned to Harmed Investors
The U.S. Securities and Exchange Commission announced on October 6 that it has asked a court to enter a final judgment against Stephen Kenneth Leech II, the former co-chief investment officer of registered investment adviser Western Asset Management Company.
In its November 2024 complaint, the SEC alleged that from at least January 2021 through October 2023, Leech placed trades and then routinely delayed allocations until near or after futures markets set daily settlement prices, letting him steer hundreds of millions of dollars in first-day gains to favored portfolios and a similar amount of losses to disfavored ones — a practice known as cherry-picking.
Without admitting the allegations, Leech consented to a judgment ordering him to pay a $3 million civil penalty, imposing an officer-and-director bar and permanently enjoining him from violating the antifraud provisions of the federal securities laws; he also agreed to an industry bar. In June 2026 the SEC settled with Western Asset, which paid a $100 million penalty and established a Fair Fund. Together, about $103 million is to be returned to harmed investors. The judgment is subject to court approval.
Published by GSM · USA (original Chinese edition)
Photo: 图：纽约华尔街路牌。摄影：Chris Li，CC0，来源：Wikimedia Commons / Photo: A Wall Street sign in New York. Credit: Chris Li, CC0, via Wikimedia Commons
