Two units of PA Fund Management LLC agreed Monday to pay $50 million to settle fraud charges brought by the Securities and Exchange Commission.
PA Fund Management, an Allianz Group unit that was until recently was named Pimco Advisors Fund Management PLC, and two of its units were charged in May in a case related to short-term trading by a single hedge fund involving four equity mutual funds that were managed and distributed by the companies.
The two units, PEA Capital LLC and PA Distributors LLC, neither admitted nor denied any wrongdoing but will pay a $40 million fine to the SEC. An additional payment of $10 million will be distributed to the equity funds or their shareholders. Pimco settled a case June 1 with the State of New Jersey involving the same allegations.
