Western Asset Management Co. agreed to pay $100 million to settle SEC charges stemming from trading practices of former star manager Ken Leech. The settlement resolves an investigation into how the firm handled trading activities during Leech's tenure. Leech was once a prominent figure at the company before his departure. The SEC alleged violations in how certain trades were executed and disclosed to clients and the regulator.

The $100 million penalty represents a significant financial hit for the investment management firm, which manages billions in assets. While the settlement includes no admission of wrongdoing, it allows the SEC to close its investigation without protracted litigation. The resolution comes as regulatory scrutiny of investment firms' trading practices has intensified in recent years.

Leech's exit from Western Asset appears connected to the broader investigation, though the settlement does not specify his role in the alleged violations. For the firm, the settlement clears a legal hurdle while preserving its operational standing. The $100 million payment will be distributed to harmed investors through a Fair Fund, per SEC procedures.