The SEC announced Monday that PA Fund Management, PEA Capital and PA Distributors agreed to pay a $50 fine for defrauding investors in the PIMCO Multi-Manager Series of funds. Ten million of that sum is disgorgement and $40 million is a civil penalty.
The SEC accused PIMCO of allowing Canary Capital Parntners to time at least $60 million in and out of its funds between February 2002 and April 2003 in exchange for $27 million in "sticky assets." PIMCOs prospectuses, meanwhile, indicated the firm discouraged or limited rapid-fire trading, the SEC said. In settling the charges, the firm neither admitted nor denied the accusations.