German Insurer Allianz Agrees To $6B Fraud Settlement With US Authorities - Allianz (OTC:ALIZY)

German insurer Allianz SE ALIZY has agreed to a $6 billion settlement with U.S. authorities, the Financial Times reports.
Allianz's investment arm will plead guilty to securities fraud after a scandal at its funds business left investors nursing billions of dollars worth of losses.
The victims included teachers, clergy, bus drivers, and engineers, whose pensions were invested in institutional funds to support their retirement.
The guilty plea will disqualify the U.S. funds unit for a decade from advising U.S.-registered mutual funds and certain types of pension funds after a temporary relief period, barring Allianz subsidiaries Pimco, the fund manager, or Allianz Life.
Allianz found the chief investment officer and co-lead portfolio manager for the arm's Structured Alpha funds guilty of conspiracy to commit securities fraud, investment adviser fraud, and obstruction of justice over the affair. Two other fund managers had pleaded guilty to similar charges. Allianz has dismissed all three.
Allianz put the total bill from the settlement and other costs with the SEC and U.S. Department of Justice at $5.8 billion.
Photo by Okan Caliskan from Pixabay