Allianz Global Investors US LLC (AGI US) has pleaded guilty to criminal fraud. The group's US asset management unit allegedly rigged the securities and performance of Alpha structured funds.
AGI US was sentenced to pay two fines: the first one amounting to 2.33 billion USD and the second one worth 463 million USD. The amount of the compensations might reach 3.24 billion USD. The total amount of payments exceeds 6 billion USD.
AGI US will also pay a fine of 174.3 million USD to the U.S. Department of Justice (DOJ) and penalties of up to 675 million USD to the Securities and Exchange Commission (SEC).
In addition to the foregoing penalties, Allianz Global Investors will lose the right to manage funds in the U.S. for 10 years and will shift 120 billion USD worth of assets to Voya Investment Management (Voya IM).