WAMCO Names New CEO Following Fraud Charges Against Former CIO
, allegedly for a three-year period. The complaint states that favored clients saw gains worth hundreds of millions of dollars, with Leech personally benefiting as well. On the other hand, unfavored clients suffered losses of a similar amount.
Following these events, multiple pension funds, such as the Chicago Teachers’ Pension Fund and the Illinois Municipal Retirement Fund, have decided to terminate their relationship with WAMCO as a manager.
In light of these developments, Thomas Gahan is stepping up to lead Western Asset Management Co. as the new president and CEO. Gahan is no stranger to the finance world, having founded credit manager Benefit Street Partners in 2008. After Franklin Templeton acquired Benefit Street in 2019, Gahan took on the role of head of its alternatives business. It’s worth noting that Franklin Templeton is WAMCO’s parent company.
To support this leadership change, James Hirschman III will be moving into the role of chairman of WAMCO. Hirschman expressed his confidence in Gahan, stating, “It has been a privilege to serve as President and CEO of Western Asset for over two decades, and I am confident that Tom is the right person to lead us as we strengthen our client offerings.”
This transition comes after the recent fraud charges against former WAMCO CIO Ken Leech by the Securities and Exchange Commission. The SEC complaint accuses Leech of favoring certain client portfolios over others and engaging in cherry-picking in his trades.
In addition to his responsibilities at WAMCO, Thomas Gahan will continue to serve as chairman of BSP, bringing his expertise from Benefit Street Partners to his new role at Western Asset Management Co. Stay informed about the latest industry news by signing up for CIO newsletters.
Tags: James Hirschman, Ken Leech, Thomas Gahan, WAMCO, Western Asset Management Co.
