allianz fund supervisor’s lawyer says us were given privileged data in fraud case

(bloomberg) — a former allianz se hedge fund supervisor who was charged with fraud over billions of dollars in investor losses thinks us prosecutors can also have used his former legal professional to gain wrong access to privileged statistics — something that can sink a crook case, if true.

gregoire tournant, who changed into leader funding officer and co-lead portfolio supervisor of a set of allianz hedge budget that collapsed at some stage in pandemic marketplace gyrations, pleaded now not responsible thursday in big apple to 5 criminal prices, which includes securities fraud and conspiracy to hinder justice. he’s accused of misleading traders who have been looking for low-hazard property.

at some stage in the courtroom listening to, tournant’s attorney, seth levine, hinted at his purchaser’s protection with the aid of arguing that investigators had grew to become tournant’s previous attorney right into a “authorities informant,” allowing them to benefit access to substances covered by using legal professional client privilege. this kind of circulate violates “bedrock” prison principles, he stated.

levine requested us district choose laura taylor swain to order the government to right now inform the defense what materials it were given from the former legal professional, when they were handed over and who at the justice branch would have visible them. swain denied the movement after the prosecution said it deliberate to offer the statistics to the protection quickly besides.

tournant’s former lawyer is a partner at sullivan & cromwell llp, which is likewise the regulation organization for allianz and is representing the enterprise in the case. the regulation firm’s media representative didn’t without delay respond to a message in search of comment, and neither did the justice branch.

read greater: allianz fund crumble ends in responsible plea, $5.8 billion deal

the decide additionally accredited information of a bail package deal agreed to via tournant and the government, inclusive of a $20 million private recognizance bond signed with the aid of 3 people vetted by means of the government and secured by 5 residences in colorado and tournant’s retirement account.

the plea by using tournant, a fifty five-12 months-antique equity-alternatives whiz and onetime mckinsey & co. consultant, comes much less than a month after a unit of allianz pleaded responsible to fraud and agreed to pay $five.8 billion after misrepresenting the risk posed by using the collapsed finances.

tournant, a twin us-french citizen who became arrested in colorado last month, spoke quietly for the duration of thursday’s hearing as he showed that he understood the charges and rejected them.

attorneys for tournant have called the case against him a “meritless and sick-considered attempt via the authorities to criminalize the impact of the unparalleled, covid-brought about marketplace dislocation of march 2020.”

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