On September 13, 2004, the SEC instituted settled administrative and cease-and-desist proceedings against PA Fund Management LLC, PEA Capital LLC, and PA Distributors LLC. According to the SEC: "This action concerns the negotiated but undisclosed, market timing agreement between Respondents and a hedge fund allowing the hedge fund to market time several mutual funds that are part of the PIMCO Equity Funds: Multi-Manager Series ('PIMCO Equity Funds' or the 'Funds')."

On October 7, 2010, the SEC issued Notice of Proposed Plan of Distribution and Opportunity for Comment. According to the SEC: "The Fair Fund is comprised of $48,383,262 in disgorgement, prejudgment interest and penalties paid by the Respondents, plus accumulated interest, less any federal, state, or local taxes on the interest. The Distribution Plan, if approved, proposes the distribution of the monies based on shareholders' losses, defined as shareholder dilution and transactions costs, caused by market timing in the Equity Funds from February 2002 to April 2003. Harmed shareholders will receive their losses suffered and their proportionate share of advisory fees paid by the funds that suffered losses and their proportionate share of interest earned on the Fair Fund."

According to the SEC, the Proposed Plan of Distribution, "sets forth the procedures by which to distribute to investors, for the period spanning February 2002 through April 2003, their proportionate share of the fund established to compensate such investors for injury they may have suffered as a result of market timing in four funds that were formerly part of the PIMCO Equity Funds: Multi-Manager Series ('Equity Funds' or 'Funds'), Growth Fund, Opportunity Fund, Target Fund, and Innovation Fund. Losses and fees will be paid to all shareholders who were directly harmed by the market timer, to the extent that these shareholders can be identified and located. The Fair Fund is not intended to compensate investors for losses they incurred because of fluctuations in securities markets." Michael F. Koehn, Ph.D. was engaged as the Independent Distribution Consultant in the matter. Rust Consulting, Inc. was proposed to serve as the Fund Administrator.

On December 10, 2010, the SEC ordered the approval of the Distribution Plan, the appointment of Rust Consulting, inc. as the Fund Administrator, and the waiver of the bond requirement for good cause shown. According to the SEC: "The Distribution Plan provides for the distribution of the Fair Fund based on shareholders' losses, defined as shareholder dilution and transaction costs, caused by market timing in the Equity Funds from February 2002 to April 2003. Harmed shareholders will receive their losses suffered and their proportionate share of advisory fees paid by the funds that suffered losses and their proportionate share of interest earned on the Fair Fund. Upon termination of the Fair Fund, the monies that remain in the Fair Fund will be transferred to the Commission for remittance to the U.S. Treasury."

According to the SEC: "The Distribution Plan sets forth the procedures by which to distribute to investors, for the period spanning February 2002 through April 2003, their proportionate share of the fund established to compensate such investors for injury they may have suffered as a result of market timing in four funds that were formerly part of the PIMCO Equity Funds: Multi-Manager Series ('Equity Funds' or 'Funds'), Growth Fund, Opportunity Fund, Target Fund, and Innovation Fund. Losses and fees will be paid to all shareholders who were directly harmed by the market timer, to the extent that these shareholders can be identified and located. The Fair Fund is not intended to compensate investors for losses they incurred because of fluctuations in securities markets." Michael F. Koehn, Ph.D. was engaged as the Independent Distribution Consultant in the matter. Rust Consulting, Inc. was appointed by the Commission to serve as the Fund Administrator.

On May 12, 2011, the SEC ordered that, "the Commission staff shall transfer for the first tranche $20,174,793.19 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan." According to the SEC: "The Distribution Plan provides that the Fair Fund consisting of disgorgement, civil penalties, and accrued interest, by transferred to Deutsche Bank Trust Company Americas ('Deutsche Bank') for distribution by the Fund Administrator to injured investors according to the methodology set forth in the Plan."

On December 9, 2011, the SEC ordered that, "the Commission staff shall transfer for the second tranche $2,932,078.67 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan." According to the SEC: "The Distribution Plan provides that the Fair Fund consisting of disgorgement, civil penalties, and accrued interest, by transferred to Deutsche Bank Trust Company Americas ('Deutsche Bank') for distribution by the Fund Administrator to injured investors according to the methodology set forth in the Plan."

On January 15, 2015, the SEC ordered that, "the Commission staff shall disburse the amount stated in the validated payment file of $3,404,162.72 as provided in the Plan." According to the SEC: "The Plan ... provides that any monies not distributed to investors may be distributed to the PIMCO mutual funds, or their successors, harmed by market timing activity in proportion to the portion of overall harm each fund suffered. The Fund Administrator was unable to distribute a total of $3,404,162.72, which is currently held by the Commission."

The Commission stated that "A. The remaining Fair Fund balance of $29,631,674.91, and any funds returned to the Fair Fund in the future, shall be transferred to the U.S. Treasury; B. The Fund Administrator, Rust Consulting, Inc. is discharged; and C. The Fair Fund is terminated."