Junior Wamco Analyst Uncovers Ken Leech's Alleged $600M Fraud

A junior analyst at Western Asset Management Co. raised concerns about trading allocations made by star bond trader Ken Leech in 2023. The analyst and a senior portfolio manager analyzed records, which led to the issue being reported to management, the SEC, and Manhattan federal prosecutors. Leech was charged with fraudulently allocating over $600 million in gains to favored clients while forcing losses on others. His trial is set for April, with defense lawyers seeking to limit testimony from the analyst and portfolio manager.