NEW YORK (Reuters) – A U.S. decide on Thursday set a 2024 trial date for former Allianz (ETR:) SE government Gregoire Tournant, citing the complexity of allegations he defrauded traders out of billions of {dollars} by understating the dangers of what they purchased.
Tournant, the previous chief funding officer who created and oversaw Allianz’s now-defunct Structured Alpha funds, was indicted in Might on fraud, conspiracy and obstruction prices and pleaded not responsible.
The funds as soon as had greater than $11 billion of belongings beneath administration, however misplaced greater than $7 billion as COVID-19 roiled markets in February and March 2020.
Allianz agreed to pay greater than $6 billion in a settlement with U.S. authorities in Might, and the German firm’s U.S. asset administration unit pleaded responsible to securities fraud.
Chief Decide Laura Taylor Swain of the Manhattan federal court docket scheduled Tournant’s trial for Feb. 5, 2024, rejecting his lawyer’s argument that it was untimely to schedule a date.
Seth Levine, a lawyer for Tournant, stated he’ll search to dismiss the case as a result of prosecutors obtained info from Tournant’s former lawyer, who additionally represented Allianz, that ought to have been withheld based mostly on attorney-client privilege.
Authorities had accused Aliianz’s U.S. unit, Allianz World Buyers US LLC, of deceptive pension funds and having “important gaps” in its oversight.
Buyers have been informed the funds employed choices that included hedges to guard towards market crashes, however prosecutors stated fund managers repeatedly failed to purchase these hedges.
The conviction carried a 10-year ban on Allianz World Buyers offering advisory providers to U.S.-registered funding funds.
Allianz subsequently moved about $120 billion of investor belongings to Voya Monetary (NYSE:) Inc in alternate for a 24% stake in Voya’s asset administration enterprise.
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