04:08 PM EDT, 08/21/2024 (MT Newswires) -- Franklin Resources' ( BEN ) Western Asset Management unit is facing a criminal investigation by federal prosecutors into whether a company executive allocated lucrative trades to favored accounts and moved less profitable trades to others, Bloomberg reported Wednesday, citing people familiar with the matter.

The investigation is led by the US Attorney's Office in Manhattan, the people were quoted as saying.

The US Securities and Exchange Commission is also conducting a separate investigation, according to the report.

Franklin Resources ( BEN ), Western Asset Management, and the SEC did not immediately respond to MT Newswires' requests for comment.

Shares of Franklin Resources ( BEN ) fell 12.6% Wednesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)