Former Allianz employee pleads guilty to fraud over $7 billion funds meltdown
Allianz fund manager pleaded guilty on Friday over his role in a meltdown of private investment funds sparked by the COVID-19 pandemic, and which according to prosecutors caused $7 billion of investor losses.
Lok Sabha Elections: Track all the political movements Live
The fine print of Das & Co's first post poll policy
Shah, Nadda hash out deals with allies as Jun 9 looms
Gregoire Tournant admitted to two counts of investment adviser fraud, at a hearing before Chief Judge Laura Taylor Swain of the federal court in Manhattan.
Want a Loan? Get cash against your Mutual Funds in 4 hours
Tournant's case stemmed from the March 2020 collapse of the German insurer's now-defunct Structured Alpha funds, which Tournant had created and oversaw as chief investment officer.
The funds once had more than $11 billion of assets under management, but lost about $7 billion in February and March 2020 as the start of the pandemic set off a worldwide market panic.
Prosecutors said Tournant misled investors about the funds' risks by altering performance data and diverging from his promised hedging strategy, and obstructed a U.S. Securities and Exchange Commission probe by directing a colleague to lie.
In May 2022, Allianz agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to securities fraud to resolve government probes into the funds collapse. Two other former Allianz
