Former Allianz fund manager, Gregoire Tournant, faces criminal fraud charges related to his alleged role in causing over $7 billion in investor losses. U.S. District Judge Laura Taylor Swain in Manhattan federal court recently denied Tournant’s bid to dismiss the five-count indictment, which includes an obstruction charge. Tournant, who previously served as the creator and chief investment officer of Allianz’s now-defunct Structured Alpha Funds, has pleaded not guilty to the charges.
The indictment relates to big losses in Feb and Mar 2020 due to COVID-19. Prosecutors say Tournant hid risks about Structured Alpha hedge funds and misled Allianz as well as SEC, while personally pocketing around $60 million in compensation.
Tournant’s defense argued that the law firm Sullivan & Cromwell, which had previously represented both Tournant and Allianz, turned against him to protect the German insurer after it decided to cooperate with authorities. He contended that the indictment should be dismissed due to the alleged corruption within the prosecution’s approach.
The U.S. Attorney’s office in Manhattan refuted Tournant’s claims, dismissing them as baseless, and asserted that he was trying to shift responsibility away from himself. Two other former portfolio managers involved in the case have already pleaded guilty and agreed to cooperate with prosecutors.
Tournant’s trial is scheduled for February 5, 2024.