The PIMCO funds group is expected to pay $18 million to New Jersey regulators to settle accusations it engaged in abusive trading practices at the expense of ordinary investors, The Wall Street Journal said on Tuesday.

PIMCO, based in Newport Beach, California, is expected to settle the New Jersey civil fraud charges as early as this week, the newspaper said.

In February, New Jersey state regulators accused Pimco of allowing hedge fund Canary Capital Partners LLC to rapidly trade shares in Pimco’s stock and bond funds in violation of the investment firm’s rules. Canary has been at the center of a trading scandal engulfing the mutual fund industry.

New Jersey regulators are expected to drop the portion of the charges related to PIMCO’s bond group, home to portfolio manager William Gross, the Journal said, citing an unidentified person familiar with the matter.

PIMCO, known formally as Pacific Investment Management Co., did not immediately respond to a request for comment from Reuters.

(WSJ)