NYC Investment Advisor Allianz Global Investors US LLC to Plead Guilty to Multi-Billion Dollar Fraud Scheme
According to U.S. prosecutors on May 17, Allianz Global Investors US LLC, a New York City-based investment advisor agreed to plead guilty to fraud charges after bus drivers, subway conductors and charitable groups lost $5 billion from private investment funds that were once worth $11 billion.
The U.S. Attorney’s office reportedly brought criminal charges against Allianz Global for failing to disclose an “egregious, long-running and expensive fraud,” after the firm settled similar charges with the SEC.
Allianz Global Investors US LLC reportedly agreed to plead guilty this week as part of a deal with prosecutors for its alleged involvement in the fraud. The company will reportedly pay $3.2 billion in restitution, a $2.3 billion fine and will have to forfeit $463 million, according to reports. The fraud allegedly occurred between 2014 and 2020.
According to the US Attorney’s office, conspiracy, securities fraud and obstruction of justice charges were filed against the former chief investment officer for a series of funds at the company that was once worth $11 billion. Two other men involved in the fraud have pleaded guilty and are cooperating, according to the prosecutor.
The U.S. attorney reportedly accused the executive and his co-conspirators of lying to investors and secretly exposing them to significant risk in order to profit illegally. The investors reportedly lost billions when the market crashed from the Covid-19 pandemic.
The SEC penalties against Allianz include $315.2 million in disgorgement, $34 million in prejudgment interest and a $675 million civil penalty, and where the largest penalties the SEC has brought in 20 years, according to the SEC Director of Enforcement in a press conference.
The Chief Investment Officer reportedly turned himself in on May 17 in Denver, Colorado, and was released on $20 million bond, according to the press release.
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Tags: Allianz Global Investors fraud charges, Allianz Global Investors US LLC complaints, Allianz Global Investors US LLC Investigation, Allianz Global Investors US LLC options, Allianz Global Investors US LLC sanctions, securities fraud attorneys Last modified: November 29, 2022