Allianz SE has confirmed that its oblique subsidiary, Allianz World Traders US LLC (AGI US), will plead guilty to legal securities fraud and pay $5.8 billion after misrepresenting the danger posed by a bunch of its hedge funds that had been rocked by pandemic market situations.
In an announcement, Allianz SE stated AGI US had entered settlements with the US Division of Justice (DOJ) and the US Securities and Alternate Fee (SEC or fee) relating to the Structured Alpha Funds problem after the fee established that it violated related US securities legal guidelines. A Bloomberg report revealed that the entire payout, together with a $1 billion advantageous to the SEC, is roofed by provisions the corporate has already taken.
Manhattan US lawyer Damian Williams confirmed via Bloomberg that Gregoire Tournant, former chief investment officer and co-lead portfolio supervisor of the Structured Alpha Funds, was taken into custody on Tuesday and charged individually for his position in the alleged scheme to defraud traders. Particularly, prosecutors stated Tournant and two portfolio managers overstated the extent of unbiased oversight AGI US was offering, misrepresented hedging and different danger mitigation methods, and altered paperwork to cover the riskiness of the funds.
“On account of this scheme to defraud, traders’ funds had been uncovered to greater danger than promised, and traders had been disadvantaged of details about the true dangers to which their investments had been uncovered,” in accordance to Tournant’s indictment, as reported by Bloomberg.
In the meantime, Allianz claimed that the DOJ’s assertion of info confirmed that AGI US’s legal conduct relating to Structured Alpha Funds was restricted to a handful of people in its Structured Merchandise Group, now not employed by the corporate. Furthermore, the DOJ’s investigation didn’t discover any information of, or participation in the misconduct at Allianz SE or any Allianz Group entity.
Allianz expects the guilty plea to disqualify AGI US from advising US-registered mutual funds and sure forms of pension fund after a brief aid interval. It additionally expects the SEC to problem waivers to make sure that AGI US’s decision with the DOJ doesn’t influence PIMCO and Allianz Life’s enterprise.
Allianz SE has confirmed that its oblique subsidiary, Allianz World Traders US LLC (AGI US), will plead guilty to legal securities fraud and pay $5.8 billion after misrepresenting the danger posed by a bunch of its hedge funds that had been rocked by pandemic market situations.
In an announcement, Allianz SE stated AGI US had entered settlements with the US Division of Justice (DOJ) and the US Securities and Alternate Fee (SEC or fee) relating to the Structured Alpha Funds problem after the fee established that it violated related US securities legal guidelines. A Bloomberg report revealed that the entire payout, together with a $1 billion advantageous to the SEC, is roofed by provisions the corporate has already taken.
Manhattan US lawyer Damian Williams confirmed via Bloomberg that Gregoire Tournant, former chief investment officer and co-lead portfolio supervisor of the Structured Alpha Funds, was taken into custody on Tuesday and charged individually for his position in the alleged scheme to defraud traders. Particularly, prosecutors stated Tournant and two portfolio managers overstated the extent of unbiased oversight AGI US was offering, misrepresented hedging and different danger mitigation methods, and altered paperwork to cover the riskiness of the funds.
“On account of this scheme to defraud, traders’ funds had been uncovered to greater danger than promised, and traders had been disadvantaged of details about the true dangers to which their investments had been uncovered,” in accordance to Tournant’s indictment, as reported by Bloomberg.
In the meantime, Allianz claimed that the DOJ’s assertion of info confirmed that AGI US’s legal conduct relating to Structured Alpha Funds was restricted to a handful of people in its Structured Merchandise Group, now not employed by the corporate. Furthermore, the DOJ’s investigation didn’t discover any information of, or participation in the misconduct at Allianz SE or any Allianz Group entity.
Allianz expects the guilty plea to disqualify AGI US from advising US-registered mutual funds and sure forms of pension fund after a brief aid interval. It additionally expects the SEC to problem waivers to make sure that AGI US’s decision with the DOJ doesn’t influence PIMCO and Allianz Life’s enterprise.