Treadway Pays Second, $75,000 Fine to SEC Over Directed Brokerage

Stephen Treadway, former chairman of PIMCO Funds 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 the funds', rather than the firm's, assets, Treadway caused a conflict of interest that should have been disclosed to the board.

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