The indictment in opposition to Mr. Tournant stated he had sought to impede the S.E.C. investigation and had repeatedly instructed one of many former portfolio managers to lie to investigators.
Mr. Tournant, 55, voluntarily surrendered to authorities in Denver on Tuesday morning, in accordance to a spokesman for Damian Williams, U.S. lawyer for the Southern District of New York. A lawyer for Mr. Tournant, Dan Alonso, couldn’t instantly be reached for remark.
In a assertion, Allianz stated the misconduct was “limited to a handful of individuals” who have been not employed by the corporate.
Representatives of the agency have been anticipated to seem in federal court docket to enter the guilty plea for its investment arm. Mr. Bond-Nelson and Mr. Taylor, the portfolio managers who agreed to plead guilty for his or her function within the scheme, additionally agreed to settle with the S.E.C.
“Allianz Global Investors admitted to defrauding investors over multiple years, concealing losses and downside risks of a complex strategy, and failing to implement key risk controls,” stated the S.E.C. chairman, Gary Gensler. “The victims of this misconduct include teachers, clergy, bus drivers and engineers, whose pensions are invested in institutional funds to support their retirement.”
The misrepresentations to traders started way back to 2016, in accordance to investigators. That helped the agency generate $400 million in internet income from managing the funds and huge bonuses for the previous portfolio managers.
A press release of information, which is a part of the plea paperwork by Allianz’s investment agency, stated the agency “made false and misleading statements to current and prospective investors that substantially understated the risks being taken by the funds, and also overstated the level of independent risk oversight over the funds.”
A pitchbook ready for traders misrepresented steps the fund had taken to hedge its investments in opposition to losses, authorities stated. The portfolio managers additionally “smoothed” the returns generated by the funds to make their efficiency look extra predictable.