New Jersey regulators and the PIMCO funds have agreed to settle for $18 million stemming from the companys improper mutual fund trades, according to The Wall Street Journal.
Sources told the Journal that Newport Beach, Calif.-based PIMCO, under civil action for fraud, also got an added break, as the regulators agreed to abandon charges against the companys bond group.
PIMCOs involvement in the mutual fund scandal allegedly took place by allowing Canary Capital Partners to conduct speedy in-and-out fund transactions at the expense of average investors. PIMCO was charged back in February with allowing the Canary moves in both stock and bond funds, a direct violation of company policy though not technically illegal.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.