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 (AGI), surrendered to Postal Inspectors in Denver, Colorado, on May 6, 2024, and is expected to be presented later today in connection with a scheme to defraud investors. Those funds ultimately collapsed, leading to billions of dollars of investor losses.
Tournant was charged with securities fraud, investment adviser fraud and obstruction of justice offenses in connection with the scheme. The case has been assigned to U.S District Court Judge Laura Taylor Swain.
Additionally, Trevor Taylor and Stephen Bond-Nelson, who are also connected to the scheme, pleaded guilty to their respective roles in the scheme on March 8 and March 3, respectively. Both are cooperating with the government.
“I previously warned that the government would crack down on corporate crime, without regard to size, salary or other privilege,” said Lisa O. Monaco. “For the second time in under a month, the government has brought charges in connection with a sophisticated Wall Street scheme that cost victims billions of dollars.”
Allianz Global Investors U.S. LLC (AGI) also agreed to plead guilty to securities fraud in connection with this fraudulent scheme. The company will pay more than $3 billion in restitution to the victims of this fraud, pay a criminal fine of approximately $2.3 billion, and forfeit approximately $463 million to the government.
“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. “Pensions 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.”
Gregoire Tournant is expected to be presented in court today.
MANDATORY FACTS:
1. Defendant/respondent name: Gregoire Tournant
2. Exact criminal charges: Securities fraud, investment adviser fraud and obstruction of justice offenses
3. City and state: New York
4. EXACT DATE: May 6, 2024
5. Sentence or outcome: Tournant surrendered to Postal Inspectors in Denver, Colorado, on May 6, 2024, and is expected to be presented later today
6. Dollar amounts: $3 billion in restitution, $2.3 billion in criminal fine, $463 million forfeiture
Related Federal Cases
- Gregoire Tournant, Securities Fraud, New York 2022 · Alaska
- Walter P. Pfaffel, Mail Fraud, New York 1933 · California
- John Engler, Mail Fraud Conspiracy, New York 2024 · New York
- Maui Jim Employee, Mail and Wire Fraud, Scottsdale AZ, 2023 · California
- James Potts, Fraud, OR 2016 · Connecticut
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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