Allianz Pleads Guilty to Fraud and Agrees to Pay $5.8 Billion

Posted on May 25th, 2022 at 10:41 AM
Allianz Pleads Guilty to Fraud and Agrees to Pay $5.8 Billion

From the Desk of Jim Eccleston at Eccleston Law:

A unit of Allianz SE has agreed to plead guilty to securities fraud and pay $5.8 billion in fines and restitution following the collapse of a relatively low-risk pool of investment funds amidst pandemic volatility. 

The firm has agreed to pay $3.2 billion in restitution to investors in its Structured Alpha Funds as well as a $1 billion fine to the Securities and Exchange Commission (SEC). A former executive at Allianz, Gregoire Tournant, has been separately charged for his role in the alleged securities fraud, according to Manhattan U.S. Attorney Damian Williams. Tournant, who served as the former chief investment officer, assisted in overstating the degree of independent supervision that AGI was providing, misrepresented several risk mitigation strategies and altered documents to conceal the volatility of the funds, according to prosecutors. 

Despite being created to protect investors from a market downtown, the Structured Alpha hedge funds suffered substantial hits amidst volatility during the pandemic. During the first quarter of 2020, the Structured Alpha hedge funds lost between 49% and 97% of their value. Allianz subsequently liquidated two of the funds in March 2020, and has proceeded to liquidate others. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory, arbitration and disciplinary matters. Those investors who lost money in Structured Alpha Funds should contact us.

 
 

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

December 16, 2025
Reminders for CFAs in Adhering to Compliance Standard, Client-Disclosure and Conflict Management Requirements

In 2023, the CFA Institute Board of Governors approved targeted revisions to the Standards of Professional Conduct, adding one new standard and updating two others.

December 15, 2025
FINRA Sanctions Former Merrill Broker for Unapproved Referral Payouts

The Financial Industry Regulatory Authority (FINRA) issued a six-month suspension and a $7,500 fine against former Merrill Lynch broker Jeremiah Householder after finding that he accepted referral commissions from an unapproved third-party lender.

December 12, 2025
SEC Charges Driver Who Posed as a Financial Professional and Lost Over $1 Million

Federal regulators charged a New York area driver with masquerading as a seasoned investment professional and causing significant losses for three investors.