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NEW YORK/MUNICH, May 17 (Reuters) –

Germany’s Allianz SE (ALVG.DE) will pay about $6 billion and its U.S. asset management unit will plead guilty to fraud over the collapse of its multibillion dollar Structured Alpha funds amid market turmoil triggered by the COVID-19 pandemic.

The U.S. Department of Justice, which announced the payout and plea, also said Gregoire Tournant, the former chief investment officer overseeing the Structured Alpha funds, is being indicted for conspiracy, securities fraud, investment advisor fraud and obstruction of justice.

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According to court papers, Allianz Global Investors US LLC will plead guilty to a securities fraud charge, while the payout includes a $2.33 billion fine, $3.24 billion of restitution and $463 million of forfeiture.

www.reuters.com/business/finance/allianz-pay-6-bln-over-structured-alpha-fraud-fund-manager-charged-2022-05-17/

www.sec.gov/news/press-release/2022-84

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