Ex-Manager’s Complaint
The SEC’s probe, which started around the middle of 2014, centered on claims similar to those in a 2013 lawsuit from a former Pimco money manager. Jason Williams filed a wrongful termination claim based on his March 2012 firing, three weeks after telling the firm he had spoken with agents overseeing a U.S. bailout program and was cooperating with their inquiry, according to his lawsuit, in state court in Santa Ana, Calif.
The SEC was examining whether the total return ETF purchased small lots of bonds at discounts, then marked them up when valuing holdings to artificially boost returns, a person familiar with the probe said last September, requesting anonymity because it’s confidential.
Williams, whose complaint included a list of alleged wrongdoing at Pimco, withdrew the case three days after filing it, and court records don’t indicate why. His complaint cited “artificial manipulation of the price” of the Total Return ETF in or around March 2012, the same month he was terminated. The complaint didn’t elaborate.