Stephen Treadway, former chairman of PIMCO Funds: Multi Manager Series and chief executive of the firm’s brokerage, settled with the Securities and Exchange Commission for $75,000 for directing brokerage business between 2000 and 2003 to nine firms in exchange for shelf space. The SEC said by paying some of the funds’ distribution costs out of funds’, rather than the firm’s, assets, Treadway caused a conflict of interest that should have been disclosed to the board.

In exchange for the directed trades, the PIMCO funds were placed on lists of preferred mutual funds, allowed to participate in meetings with registered reps and prominently mentioned in communications with the brokerages’ customers.

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