One of Allianz’s US investing divisions pleaded guilty and agreed to pay more than $6bn in penalties and restitution for a scheme to defraud investors in funds that imploded during the March 2020 market selloff, the Justice Department said 17 May.

Allianz Global Investors US pleaded guilty to one count of securities fraud and admitted that it lacked internal controls and oversight for a series of private-investment funds and made false and misleading statements to investors, according to a plea agreement reached with federal prosecutors in New York.