AllianzGI to pay $6bn as SEC charges firm and portfolio managers with multibillion fraud

Mark Battersby
clock • 5 min read

The Securities and Exchange Commission (SEC) on 17 May charged Allianz Global Investors U.S. LLC (AGI US) and three former senior portfolio managers with a massive fraudulent scheme that concealed the immense downside risks of a complex options trading strategy they called "Structured Alpha." AGI US marketed and sold the strategy to approximately 114 institutional investors, including pension funds for teachers, clergy, bus drivers, engineers, and other individuals.   After the COVID-19 market crash of March 2020 exposed the fraudulent scheme, the strategy lost billions of dollars as...

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