Former star bond investor Ken Leech pleads guilty to obstructing probe

Former star bond investor Ken Leech pleaded guilty to obstructing a federal investigation on March 18, 2024. Leech was accused of "cherry picking" profitable trades for favored portfolios, a scheme that allegedly generated millions of dollars for select clients while disadvantaging others. The trial on these charges was scheduled to commence on the same day as his guilty plea. Leech's actions were part of an investigation by the Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Southern District of New York. The obstruction charge stems from allegations that Leech provided false and misleading information to investigators when they probed his trading practices at Highland Capital Management. He had previously been a prominent figure in the hedge fund industry, managing billions of dollars before his downfall. His plea agreement indicates he will cooperate with ongoing investigations into Highland Capital Management and its founder, Louis Moore Bacon.