Allianz to pay $6 billion over Structured Alpha fraud, fund manager charged
2022.05.17 16:16
FILE PHOTO: The logo of Allianz is seen on a building in Paris, France, April 30, 2020. REUTERS/Charles Platiau/
NEW YORK (Reuters) – Germany’s Allianz (ETR:ALVG) SE has agreed to pay about $6 billion and a U.S. asset management unit will plead guilty to fraud after a group of multibillion investment funds collapsed amid market turmoil triggered by the coronavirus pandemic in 2020.
The U.S. Department of Justice, which announced the payout and plea, also said Gregoire Tournant, the former chief investment officer for the funds, is being indicted for conspiracy, securities fraud, investment advisor fraud and obstruction of justice.
Allianz’s payout includes a $2.33 billion fine, $3.24 billion of restitution and $463 million of forfeiture, according to a plea agreement.
