Western Asset Management Co., a global manager of active fixed income solutions and subsidiary of Franklin Templeton, said Tuesday that it has appointed Thomas J. Gahan as its president and CEO, and that James W. Hirschmann III — the firm's former CEO — assumes the role of chairman.
Both roles are effective immediately. Gahan, the founder and chairman of Benefit Street Partners, an alternative credit manager with over $75 billion in assets under management, will continue in that role.
The leadership change, announced Tuesday in a press release, comes after the Justice Department and Securities and Exchange Commission charged former Western Asset Management co-CIO Ken Leech with fraud.
Leech was charged with investment advisor fraud and securities fraud, each of which carries a maximum sentence of 20 years in prison; commodity trading advisor fraud and commodities fraud, both of which carry a top punishment of 10 years; and making false statements, which has a maximum penalty of five years, Bloomberg reported.
