SEC Busts Multi-Billion Dollar Institutional Scam

SEC Busts Multi-Billion Dollar Institutional Scam

Allianz Global Investors US LLC (AGI US) has been charged on Tuesday by the United States Securities and Exchange Commission with a multi-billion dollar securities fraud. SEC has also accused three senior portfolio managers from the firm/

The official press release detailed that the culprits and the firm were in on a massive strategy that concealed the risks of options trading. This strategy, called “Structured Alpha”, was open for users to see, and was promoted as being a facilitator of sorts in the clients’ trading activities.

More than 114 institutional investors were sold to the strategy, and the end result was a misappropriation of billions of dollars that were later completely lost due to the COVID induced market crash of March 2020.

The official SEC reports puts Gregoire P. Tournant, Structured Alpha’s Lead Portfolio Manager, as main head of the billion dollar scam. His ingenious lies led to inventors depositing approximately $11 billion  in the Structured Alpha strategy.

The main culrpit along with Stephen G. Bond-Nelson, the main Portfolio Manager, and Co-Lead Portfolio Manager, Trevor L. Taylor, also allegedly manipulated financial reports and other investor documents in order to hide the risks that the strategy bore.

AGI US has agreed to reimburse billions to clients, as well as $1 billion to settle SEC-imposed legal charges. Over 5$ billion will be paid as restitution to victimized users.

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