Allianz Former Fund Manager Faces US Fraud Charges and Settlement in Multibillion Dollar Investor Loss Case

Former Allianz Fund Manager Gregoire Tournant: Slated For Criminal Fraud Trial

German Economy Steams Ahead On Consumer Spending
The Allianz SE logo sits on a top of a building in Berlin, Germany, on Wednesday, Jan. 4, 2017. Germany had another year of firm growth in 2016 and should continue to be propelled in 2017 by consumer spending. Photographer: Krisztian Bocsi/Bloomberg
Former Allianz fund manager Gregoire Tournant is set to stand trial for criminal fraud in connection with a massive scheme that led to over $7 billion in investor losses.
U.S. District Judge Laura Taylor Swain’s decision to reject the motion of the former fund manager, Gregoire, for dismissal has paved the way for a full-fledged trial. The five-count indictment of the former fund manager, which includes an obstruction charge, will now proceed to be heard in court on February 5, 2024. Tournant is accused of concealing the risks of the now-defunct Structured Alpha Funds, resulting in significant losses during the COVID-19 pandemic.
Additionally, Allianz Global Investors U.S. LLC (AGI US) and three former senior portfolio managers have been charged by the Securities and Exchange Commission (SEC) for their involvement in the fraudulent scheme. AGI US where the former fund manager Tournant was employed, has agreed to pay more than $1 billion to settle the SEC charges and over $5 billion in restitution to victims. (Know more by clicking Money US News)
The complaint alleges that Tournant the former fund manager, along with other portfolio managers, manipulated financial reports and information provided to investors to conceal the true risks and performance of the Structured Alpha Funds. The fraudulent scheme was exposed when the market volatility of March 2020 resulted in catastrophic losses for investors.
SEC Chair Gary Gensler emphasized the importance of holding wrongdoers accountable including the former fund manager Tournant, even when the victims are sophisticated institutional investors. He praised the SEC staff for uncovering the fraud and commended their efforts in seeking justice for the victims.

AGI US Admitted To Violating Federal Securities Laws

AGI US where the former manager Tournant was working, admitted to violating federal securities laws and agreed to pay significant penalties. As a consequence of the guilty plea, the company will face a ten-year disqualification from offering advisory services to US-registered investment funds and will cease its involvement in conducting these fund services. To ensure a smooth transition, the SEC will allow a brief period for AGI US to transfer these services to another investment adviser.
The case where the Allianz former fund manager Tournant was involved, highlights the need to protect investors from fraudulent schemes involving complex investment strategies. The SEC’s pursuit of justice italicizes its commitment to safeguarding investors and upholding prohibitions against certain activities by guilty parties including Tournant the former fund manager. (Check reference here: SecGOV)
In conclusion, the criminal fraud charges against the former fund manager Tournant and the SEC charges against Allianz Global Investors shed light on the significant losses incurred by investors due to fraudulent practices. The legal actions aim to bring justice to the victims and hold those responsible accountable for their misconduct.

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