Allianz subsidiary agrees to plead guilty over a $7 billion investment implosion.

Even so, authorities mentioned, the funding agency’s oversight was too weak to catch the issue earlier than it was too late: The corporate’s controls have been riddled with holes that rendered them insufficient to police the managers’ buying and selling.

After the funds got here aside, investigators mentioned, the cover-up started.

Mr. Grewal mentioned when Mr. Bond-Nelson was confronted by S.E.C. employees members a couple of false assertion he had made, he took a toilet break and by no means got here again. And Mr. Taylor met with Mr. Tournant at a vacant building website to debate how to reply to investigators’ questions, authorities mentioned.

Mr. Tournant, 55, voluntarily surrendered to authorities in Denver on Tuesday morning to face prices together with securities fraud, conspiracy and obstruction of justice. In an announcement, Mr. Tournant’s legal professionals, Daniel Alonso and Seth Levine, known as the case a “meritless and ill-considered try by the federal government to criminalize the influence of the unprecedented, Covid-induced market dislocation of March 2020.”

The legal professionals mentioned Mr. Tournant was on medical depart on the time and had sustained losses to the “appreciable funding” he had made within the fund.

“Whereas the losses are regrettable, they aren’t the results of any crime,” the legal professionals mentioned.

Along with his felony case, Mr. Tournant faces civil prices from the S.E.C., which already agreed to settlements with Mr. Bond-Nelson and Mr. Taylor.

“The victims of this misconduct embrace lecturers, clergy, bus drivers and engineers, whose pensions are invested in institutional funds to assist their retirement,” mentioned the S.E.C. chairman, Gary Gensler. “This case as soon as once more demonstrates that even probably the most refined institutional buyers, like pension funds, can grow to be victims of wrongdoing.”

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