Legg Mason Unit To Pay $21M To Settle SEC Case

Law360, New York (January 27, 2014, 6:16 PM EST) -- Investment adviser and Legg Mason subsidiary Western Asset Management Co. has agreed to pay more than $21 million for allegedly failing to report investor losses and engaging in illegal cross trading, the U.S. Securities and Exchange Commission announced Monday.

The Pasadena, Calif.-based company had been brought into administrative proceedings after SEC investigators found that it never informed nearly 100 clients about a coding error that sent funds from a private investment into their accounts. The investment eventually plummeted in value, but the affected clients were neither...
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