Allianz Global Pleads Guilty, Pays $3Bln To Victims In Fraud Plot - Justice Dept.

WASHINGTON (UrduPoint News / Sputnik - 18th May, 2022) Allianz Global Investors (AGI), based in Germany, will plead guilty to securities fraud in connection with a fraudulent scheme and pay over $3 billion in restitution to its victims and a criminal fine of $2.3 billion, as well as forfeit $463 million to the US government, the Department of Justice said on Tuesday.

"(Federal officials) announced today a plea agreement pursuant to which AGI will plead guilty to securities fraud in connection with this fraudulent scheme, and pay more than $3 billion in restitution to the victims of this fraud, pay a criminal fine of approximately $2.3 billion, and forfeit approximately $463 million to the government," the press release said.

In March 2020, following the onset of market dislocations brought on by the COVID-19 pandemic, the AGI funds lost in excess of $7 billion in market value, including over $3.

2 billion in principal, and ultimately were shut down. More than 100 institutional investors, representing more than 100,000 individuals, were victims, the Justice Department said.

"These institutional investors included, among others, pension funds for teachers in Arkansas, laborers in Alaska, bus drivers and subway conductors in New York City, as well as religious organizations, engineers, and other individuals, universities and charitable organizations across the United States," the release said.

An indictment unsealed on Monday in New York charged Gregoire Tournant, the chief investment officer and co-lead Portfolio Manager for a series of private investment funds managed by AGI US, with securities fraud, investment adviser fraud and obstruction of justice offenses in connection with a scheme to defraud investors, the Justice Department said.