Kenneth Corba, the former chief executive officer of
PEA Capital, an affiliate of
"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.
Corba neither admitted nor denied the allegations but agreed not to work for an investment advisor for a year.
Stephen J. Treadway, who was the head of Pimco Advisors Distributors, faces his civil trial in U.S. District Court in Manhattan, which is scheduled to begin on Monday. Treadway has denied the allegations that he failed to heed Corba's warnings that allowing Canary Capital to market time the company's funds went against their prospectus rules.
