Two former PIMCO executives are poised to battle the Securities and Exchange Commission in court, forcing the federal regulator to prove the duo broke the law, reports The Los Angeles Times.

Attorneys for the former chairman of the PIMCO mutual funds group Stephen Treadway and PEA Capital’s CEO Kenneth Corba contend that their clients broke no laws and, therefore, the SEC’s charge of fraud won’t hold water in court. However, the attorneys did not dispute the fact that hedge fund Canary Capital had certain trading arrangements with the PIMCO funds.

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