A lawsuit brought by the Securities and Exchange Commission against two former Pimco executives will proceed to trial next month.

On Tuesday, a federal judge in New York rejected two motions for summary judgement, The Wall Street Journal reported. The trial is scheduled to begin on June 19.

In May 2004, the SEC filed charges against three Pimco units and former executives Stephen Treadway and Kenneth Corba, alleging that they had defrauded Pimco mutual fund investors by entering into a market timing arrangement with Canary Capital Partners LLC.

In September of that year, the Pimco units--Pimco Advisors Fund Management LLC, PEA Capital LLC and PA Distributors LLC--agreed to pay $50 million to settle the allegations. The entities neither admitted nor denied wrongdoing.

Treadway and Corba, for their part, acknowledged the Canary agreement but said it did not constitute fraud. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE