Allianz subsidiary agrees to plead guilty to $7 billion investment implosion.


Even so, authorities said the investment firm’s oversight was too weak to detect the problem before it was too late: the firm’s controls were riddled with holes that made them inadequate to monitor executives’ dealings .

After the funds were separated, investigators said, the cover-up began.

Mr. Grewal said that when Mr. Bond-Nelson was confronted by SEC staffers about a false statement he had made, he took a bathroom break and was not never came back. And Mr. Taylor met with Mr. Tournant at a vacant construction site to discuss how to answer questions from investigators, authorities said.

Mr. Tournant, 55, voluntarily surrendered to authorities in Denver on Tuesday morning to face charges of securities fraud, conspiracy and obstruction of justice. In a statement, lawyers for Mr Tournant, Daniel Alonso and Seth Levine, called the case “an unfounded and reckless attempt by the government to criminalize the impact of the unprecedented Covid-induced market dislocation of March 2020”.

Lawyers said Mr Tournant was on sick leave at the time and suffered losses due to the ‘considerable investment’ he had made in the fund.

“While the losses are regrettable, they are not the result of a crime,” the lawyers said.

In addition to his criminal case, Mr. Tournant faces civil charges from the SEC, which has already agreed to settlements with Mr. Bond-Nelson and Mr. Taylor.

“Victims of this misconduct include teachers, clergy, bus drivers and engineers, whose pensions are invested in institutional funds to support their retirement,” SEC Chairman Gary Gensler said. “This case demonstrates once again that even the most sophisticated institutional investors, such as pension funds, can be victims of wrongdoing.”


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