{"id":20444,"date":"2023-07-12T21:02:10","date_gmt":"2023-07-12T21:02:10","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2023\/07\/12\/allianz-u-s-unit-ordered-to-pay-6b-in-securities-fraud-case\/"},"modified":"2023-07-12T21:02:10","modified_gmt":"2023-07-12T21:02:10","slug":"allianz-u-s-unit-ordered-to-pay-6b-in-securities-fraud-case","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2023\/07\/12\/allianz-u-s-unit-ordered-to-pay-6b-in-securities-fraud-case\/","title":{"rendered":"Allianz U.S. Unit Ordered to Pay $6B in Securities Fraud Case"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/753394754\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/06\/12_Allianz-Sign_Shutterstock_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/06\/12_Allianz-Sign_Shutterstock_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p>Gregoire Tournant, the former chief investment officer and co-lead portfolio manager of the funds, was charged with fraud and conspiracy in connection with the funds\u2019 meltdown. He has pleaded not guilty and is fighting the charges.<\/p>\n<p>Two other executives with the funds, Stephen Bond-Nelson and Trevor Taylor, pleaded guilty to conspiracy and fraud last year and are cooperating with prosecutors.<\/p>\n<p>In the July 5 letter, both sides agreed that AGI did not voluntarily disclose the alleged misconduct to the government but has since cooperated with its investigation.<\/p>\n<p>AGI U.S.\u2019s Structured Alpha funds were marketed as providing protection against a market crash. Instead, they ended up losing $7 billion during the tumultuous early days of the pandemic in 2020, spurring multiple lawsuits from pension plan investors.<\/p>\n<p>Under the sentence, AGI was ordered to pay fines of $2.3 billion, $3.2 billion in restitution and to forfeit $463 million. It will receive credit for $1.9 billion already made over to victims of the fraud and for a $675 million civil penalty paid to the U.S. Securities and Exchange Commission.<\/p>\n<p>As the judge read through all the payment numbers, down to the cent, she added a $400 mandatory court assessment that is required when a corporation pleads guilty to a felony.<\/p>\n<p>\u201cThat\u2019s smaller than a rounding error in this particular case,\u201d McMahon remarked.<\/p>\n<p>The case is U.S. v. Allianz Global Investors US, 22-cr-00279, US District Court, Southern District of New York (Manhattan).<\/p>\n<p><em>(Image: Shutterstock)&nbsp;<\/em><\/p>\n<p class=\"disclaimer_message\">Copyright 2023 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gregoire Tournant, the former chief investment officer and co-lead portfolio manager of the funds, was charged with fraud and conspiracy in connection with the funds\u2019 meltdown. He has pleaded not guilty and is fighting&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":20445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2023\/07\/allianz-u-s-unit-ordered-to-pay-6b-in-securities-fraud-case.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20444"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20444"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/20445"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}