Hedge Funds

NJ regulator sues PIMCO over timing

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The hedge fund industry's mutual fund timing scandal, which New York State Attorney General Eliot Spitzer brought to the fore in the Canary Capital case, has sparked scrutiny in other states. On February 16, New Jersey securities regulators filed suit against PIMCO, accusing the mutual fund giant of effectively defrauding investors by allowing Canary Capital to actively trade or 'time' PIMCO funds, in violation of securities rules. The complaint, filed by New Jersey Attorney General, Peter Harvey, also pointed a finger of blame at PIMCO parent Allianz Dresdner Asset Management of America, PEA Capital and Pacific Investment Management.