NEW YORK, Nov 25 (Reuters) - Kenneth Leech, the former

co-chief investment officer of Western Asset Management Co, was

charged by U.S. authorities on Monday with running a fraudulent

"cherry-picking" scheme where he improperly favored some

clients' accounts over others when allocating trades.

The U.S. Securities and Exchange Commission said that

between January 2021 and October 2023, Leech disproportionately

allocated better performing trades to favored portfolios, and

worse performing trades to other portfolios.

Leech also faces related criminal charges from the U.S.

Attorney's office in Manhattan, the SEC said.

Lawyers for Leech did not immediately respond to

requests for comment. The U.S. attorney's office did not

immediately respond to a similar request.

Western Asset Management, known as Wamco, is part of

Franklin Resources ( BEN ), which acquired the business through

its purchase of Legg Mason in 2020.

Clients have pulled tens of billions of dollars from

Wamco in the last few months, after Franklin announced that

authorities were investigating Leech.