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Multi-Billion Dollar Fraud Scheme Exposed in New York
Gregoire Tournant, the Chief Investment Officer and co-lead Portfolio Manager for a series of private investment funds managed by Allianz Global Investors U.S. LLC, has been charged with conspiracy, securities fraud, investment adviser fraud, and obstruction of justice offenses in connection with a scheme to defraud investors.
The indictment alleges that Tournant and his co-conspirators lied to investors and secretly exposed them to substantial risk in order to line their own pockets and those of their employer, AGI. Pension funds for so many retirees, religious organizations, and essential workers invested with AGI because they were promised a relatively safe investment with strict risk controls.
However, when the COVID crash hit in March 2020, these investors got soaked and lost billions. “As alleged, Gregoire Tournant and his co-conspirators lied to investors and secretly exposed them to substantial risk in order to line their own pockets and those of their employer, AGI,” said U.S. Attorney Damian Williams.
U.S. Attorney Williams continued, “Pension funds for so many retirees, religious organizations, and essential workers – from laborers in Alaska, to teachers in Arkansas, to bus drivers and subway conductors here in New York City – invested with AGI because they were promised a relatively safe investment with strict risk controls. But AGI, the “master cop” that Tournant claimed was watching over his shoulder, making sure that he adhered to his promises, was asleep on the beat.”
Gregoire Tournant surrendered to Postal Inspectors in Denver, Colorado on March 8, 2022. The case has been assigned to U.S. District Judge Laura Taylor Swain.
Allianz Global Investors U.S. LLC, the employer of Gregoire Tournant, has also been charged with securities fraud. The company has agreed to plead guilty to the charges and pay more than $3 billion in restitution to the innocent victims of this fraud, pay a criminal fine of approximately $2.3 billion, and forfeit approximately $463 million to the Government. A conference has been scheduled for today at 3:00 p.m. before U.S. District Judge Loretta A. Preska, Part I, at which time AGI is expected to plead guilty to an Information pursuant to the Agreement.
Deputy Attorney General Lisa O. Monaco said, “I previously warned that the Department would crack down on corporate crime, without regard to size, salary, or other privilege. For the second time in under a month, the Department has brought charges in connection with a sophisticated Wall Street scheme that cost victims billions of dollars.”
USPIS Inspector-in-Charge Daniel B. Brubaker said, “These individuals working under the name of Allianz Global Investors, an international management firm, allegedly took advantage of its global recognition when they devised a scheme to mislead investors leading to billions of dollars of investor losses.”
Tournant’s co-conspirators, Trevor Taylor and Stephen Bond-Nelson, have also pleaded guilty to their respective roles in the scheme. The case is a significant victory for investors who lost billions in the collapse of the private investment funds.
**Case Details:**
Defendant: Gregoire Tournant
Criminal Charges: Conspiracy, securities fraud, investment adviser fraud, and obstruction of justice offenses
City and State: New York
Arrest Date: March 8, 2022
Outcome: Currently pending
Dollar Amounts: Over $3 billion in restitution, $2.3 billion fine, $463 million forfeiture
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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