US. Allianz subsidiary pleads guilty over a $7 billion investment implosion.
The German insurance firm Allianz will pay more than $6 billion over the implosion of a group of hedge funds two years ago that stuck public pensions, religious organizations, foundations and other investors with heavy losses.
An American subsidiary of the insurer, Allianz Global Investors U.S., pleaded guilty Tuesday to securities fraud for failing to stop the scheme, which came to light after the funds collapsed early in the pandemic, losing more than $7 billion before they were shut down, according to court filings by federal prosecutors.
The fraud involved three former portfolio managers, including the funds’ former chief investment officer, who misled investors for at least four years by concealing the risk they faced, prosecutors said. Gregoire Tournant, the former chief investment officer, tried to cover up the scheme and mislead investigators in spring 2020, prosecutors said.
Mr. Tournant was charged with fraud and obstruction of justice in an indictment unsealed on Tuesday. The other portfolio managers, Stephen Bond-Nelson and Trevor Taylor, pleaded guilty in March and are cooperating with the government, prosecutors said.
Read more @Ny Times
254 views
