New Delhi: The world’s top insurance company has been fined ૬ 3 billion (Rs 2,000 crore) in a case of misleading customers and making the wrong investment, the largest fine ever paid to any insurance company in history.
European insurance and financial services provider Allianz has been fined more than 3 billion for fraud in its US asset management unit in the wake of the Corona epidemic. Allianz is the fourth largest company in the world in terms of revenue and the seventh largest in terms of net premium and the largest company in the world in terms of total assets. The Allianz Company is affiliated with a market company in India.
The Allianz settlement with the US Department of Justice and Securities and Exchange Commission (SEC) is considered the biggest deal in corporate history. The SEC, which has indicted Allianz and three of his former senior portfolio managers, said Allianz was involved in a large-scale fraud scheme. It hid the risk of serious damage to a complex options trading strategy known as structured alpha. The fraud was exposed in a market crash during the Corona epidemic in March 2020. In this market crash, Allianz lost billions of dollars in this strategy. Investor documents were rewritten to minimize the risky nature of structured alpha investments. Fuey’s lawsuit, filed in Manhattan’s federal district court, alleges that Gregoire Turnant, chief portfolio manager at Structured Alpha, defrauded investors by investing an estimated ૧ 11 billion in Structured Alpha and more than a million dollars. Following the proceedings, the Allianz US Asset Management Unit agreed to pay the SEC around ૧ 1 billion to settle the case and, together with its parent company Allianz, to pay the victim ડો 2 billion. A total of 114 institutional investors, victims of the Allianz scam, include pension funds for teachers, pastors, bus drivers and engineers.
