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

The indictment towards Mr. Tournant mentioned he had sought to impede the S.E.C. investigation and had repeatedly instructed one of many former portfolio managers to misinform investigators.

Mr. Tournant, 55, voluntarily surrendered to authorities in Denver on Tuesday morning, in accordance with a spokesman for Damian Williams, U.S. legal professional for the Southern District of New York. A lawyer for Mr. Tournant, Dan Alonso, couldn’t instantly be reached for remark.

In an announcement, Allianz mentioned the misconduct was “restricted to a handful of people” who have been not employed by the corporate.

Representatives of the agency have been anticipated to seem in federal courtroom to enter the responsible plea for its funding arm. Mr. Bond-Nelson and Mr. Taylor, the portfolio managers who agreed to plead responsible for his or her function within the scheme, additionally agreed to settle with the S.E.C.

“Allianz World Traders admitted to defrauding traders over a number of years, concealing losses and draw back dangers of a posh technique, and failing to implement key danger controls,” mentioned the S.E.C. chairman, Gary Gensler. “The victims of this misconduct embrace lecturers, clergy, bus drivers and engineers, whose pensions are invested in institutional funds to assist their retirement.”

The misrepresentations to traders started way back to 2016, in accordance with investigators. That helped the agency generate $400 million in web earnings from managing the funds and enormous bonuses for the previous portfolio managers.

A press release of information, which is a part of the plea paperwork by Allianz’s funding agency, mentioned the agency “made false and deceptive statements to present and potential traders that considerably understated the dangers being taken by the funds, and likewise overstated the extent of unbiased danger oversight over the funds.”

A pitchbook ready for traders misrepresented steps the fund had taken to hedge its investments towards losses, authorities mentioned. The portfolio managers additionally “smoothed” the returns generated by the funds to make their efficiency look extra predictable.