Kenneth Corba, the former chief executive officer of PEA Capital, agreed Monday to pay $200,000 to settle with the Securities and Exchange Commission for allowing hedge fund Canary Capital Partners to market time $4 billion worth of trades in PIMCO funds.
PEA Capital, an affiliate of Pacific Investment Management Co. (PIMCO), is the investment advisor to PIMCO's equity funds.
"The defendant negotiated a secret agreement that permitted a single favored investor to engage in a trading strategy that was denied to ordinary investors," said Randall Lee, regional director of the SEC's Pacific Regional Office.
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