The Securities and Exchange Commission has posted a notable victory in the courtroom.

At Manhattan's U.S. District Court Friday afternoon, an eight-member jury found former Pimco Advisors Distributors executive Stephen Treadway liable for his part in Canary Capital Partners' market-timed trading of Pimco funds between February 2002 and April 2003.

After an eight-day trial, the jury spent two full days deliberating before returning their verdict, which judged Treadway liable on all counts placed before them. In other words, they found him to have violated, or aided and abetted violations of: Section 10(b) of the Securities and Exchange Act of 1934 and its Rule 10b-5; Section 206(2) of the Investment Advisors Act of 1940; Section 34(b) of the Investment Company Act of 1940, and Section 36(a) of the Investment Company Act.

A hearing is scheduled for July 14, at which time Judge Victor Marrero may decide upon damages and penalties to be imposed, said Randall Lee, regional director of the SEC's Los Angeles office.  

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