The US Securities and Exchange Commission has won a civil case in which a former executive of Pimco, a leading bond fund management group, was accused of defrauding mutual fund investors through a market-timing arrangement with Canary Capital Partners, a hedge fund client.

Stephen Treadway was chairman of the board of trustees of Pimco's equity funds and chief executive of Pimco Advisors Fund Management. The SEC previously settled cases with other parties related to the case, including the funds' distributor. Pimco's equity funds have since been acquired by German insurer Allianz.