Former Allianz Fund Manager Avoids Prison Time

Gregoire Tournant, a former portfolio manager for Allianz SE, has been sentenced to three years of probation and 18 months of home confinement instead of prison for his role in the collapse of investment funds that led to approximately $7 billion in investor losses during the early COVID-19 pandemic. Tournant pleaded guilty to investment adviser fraud in June, agreeing to forfeit $17.5 million and pay a $250,000 fine. Chief U.S. District Judge Laura Taylor Swain cited Tournant's severe health issues and concluded that his misconduct was not the direct cause of the investor losses. Prosecutors had sought a minimum prison sentence of seven years, arguing the severity of the losses and Tournant's attempts to obstruct investigations into the fraud. Allianz had previously agreed to pay over $6 billion to resolve related government probes, and two other former fund managers also pleaded guilty. Tournant's defense argued for leniency, highlighting his remorse and health concerns, and described the case as less serious than typical investment fraud cases.