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.

(c) 2006 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.