The German giant Allianz has agreed to pay about 6 billion dollars to close the US authorities' case concerning the Structured Alpha funds. Its asset management subsidiary Allianz Global Investors will come forward guilty of fraud, while Gregoire Tournant, the former fund manager, was indicted on charges of conspiracy, fraud and obstruction of justice.
The dispute between the German insurance group and the US Department of Justice, born following the heavy losses suffered by the Structured Alpha Funds due to the turbulence triggered by the Covid pandemic in the first months of 2020. The losses, in some cases, had even exceeded 80%, unleashing the ire of subscribers - which also include US pension funds - who had sued Allianz and pushed the SEC (the US Consob), the US Department of Justice and also the Bafin (the German Consob) to investigate the matter.
To deal with any expenses deriving from the Allianz Global Investors funds affair, on May 11, Allianz announced a provision of 1,9 billion euros for the first quarter of 2022 which had brought down net profit by 755 share 669 million. To the resources set aside in the first three months of the current year are added the 3,7 billion already set aside in the 2021 accounts, for a total that therefore reaches 5,6 billion euros. In a statement, the group had specified that it is aiming for "a rapid end to the proceedings" and that it is "in constant discussions" with the US Department of Justice and the Sec.
Under the terms of the settlement, the $6 billion that Allianz will be forced to pay include a $2,33 billion fine, the $3,24 billion restitution and a $463 million forfeiture.
