Status: 05/17/2022 8:12 p.m
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After fund losses in the billions, Allianz has admitted fraud by its subsidiary AGI. The Munich group accepted a billion-euro comparison with US authorities.
By Torsten Teichmann, ARD Studio Washington
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Allianz cheated: The 100 percent US subsidiary Allianz Global Investors (AGI) deceived investors about risks and did not inform about changes in investment products. The investments should take profits from the markets while providing security against stock market crashes. Instead, at the beginning of the corona pandemic, the products collapsed in such a way that the Allianz subsidiary had to liquidate funds and gradually wind up others.
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Investors then lost billions and sued. The German insurance and financial group now admits a case of fraud in the agreement with the US Department of Justice. The criminal misconduct goes back to a few people who are no longer employed by the company, the core headquarters tried to defend themselves in a press statement.
Allianz pays fines in the billions
Former AGI senior investment manager Greg Tournant has been arrested. Charges are brought against him. And the company is paying: according to Bloomberg, a total of $3.2 billion to the injured parties and a $2.3 billion fine to the Justice Department and the Securities and Exchange Commission.
In addition, the US subsidiary has to sell its investment management division with a value of 120 billion dollars. In addition, the part of the company may not offer any business with pension and investment funds in the next ten years.
However, the agreement with the US Department of Justice also means legal certainty for Allianz investors. For a possible comparison, the group had already built up billions in reserves. The company’s shares were in greater demand than before on the stock exchange after the decision became known.
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