Kenneth Corba, former chief executive of PEA Capital, a sub-adviser to Pimco equity funds, agreed to pay $200,000 (€159,000) to settle fraud charges involving market-timing trades with collapsed hedge fund Canary Capital Partners.

According to the Securities and Exchange Commission, Corba defrauded Pimco mutual fund investors by failing to disclose his trading arrangement with Canary. Corba and Canary had a special market timing arrangement that made more than $4bn in improper trades with money from several Pimco funds. He was the portfolio manager for the Pimco Growth Fund, which provided Canary with $30m in market timing capacity, and for the Pimco Select Growth Fund, the SEC said.