One of
Allianz SE’s
ALIZF 2.74%
U.S. investing divisions pleaded responsible and agreed to pay greater than $6 billion in penalties and restitution for a scheme to defraud buyers in funds that imploded through the March 2020 market selloff, the Justice Department stated Tuesday.
Allianz Global Investors U.S. pleaded responsible to 1 rely of securities fraud and admitted that it lacked inner controls and oversight for a sequence of private-investment funds and made false and deceptive statements to buyers, in line with a plea settlement reached with federal prosecutors in New York.
Investors, together with pensions that managed the retirement plans of Arkansas academics and New York City subway staff, misplaced billions on the funds.
Three former staff of Allianz Global Investors have been additionally charged within the scheme. Two have pleaded responsible.
Gregoire Tournant, who ran the funding group answerable for the funds’ steep losses, was indicted on a number of counts, together with securities fraud and investment-adviser fraud. Mr. Tournant surrendered to authorities in Denver Tuesday morning, in line with an individual conversant in the matter.
Trevor Taylor, Mr. Tournant’s co-lead portfolio supervisor of the Structured Alpha funds, together with a 3rd cash supervisor within the group, Stephen Bond-Nelson, agreed to plead responsible to expenses of conspiring to commit securities fraud, in addition to securities fraud and investment-adviser fraud. Mr. Bond-Nelson additionally agreed to plead responsible to a cost of conspiracy to impede justice.
Write to James Fanelli at [email protected], Justin Baer at [email protected] and Julie Steinberg at [email protected]
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