The Securities and Exchange Commission fined Stephen Treadway, former chairman of the equity mutual funds at PIMCO, $572,000 for allowing improper trading of mutual funds. Treadway has also been banned from serving as an officer or a director of a mutual fund company for one year.

The settlement comes three months after a federal jury found he had violated his fiduciary duty to investors by allowing Canary Capital to time PIMCO's funds in exchange for making long-term investments in the funds.

"The essence of this case is that all investors in a mutual fund, large or small, wealthy or not, are entitled to a level playing field," said Randall Lee, director of the SEC's Los Angeles bureau. "The sanctions against Stephen Treadway are a fitting culmination to our case."

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