Allianz Global Investors U.S. agreed to plead guilty to fraud and pay $5.8 billion in fines and restitution after a relatively low-risk group of investment funds collapsed in the wake of pandemic market gyrations.
The guilty plea means it is "disqualified from providing advisory services to US registered investment funds for the next 10 years, and will exit the business of conducting these fund services," the Securities and Exchange Commission said in a statement Tuesday.
Gregoire Tournant, a former executive with the firm, was taken into custody Tuesday and charged separately for his role in the alleged scheme to defraud investors, Manhattan U.S. Attorney Damian Williams said in a separate statement.
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