Skip to main content

When Allianz Global Investors hedge fund manager Stephen Bond-Nelson sat down with the Securities and Exchange Commission, he had a plan. Allegedly hatched with his boss, chief investment officer Gregoire Tournant, it was pretty simple: Based on their conviction that the SEC couldn’t possibly have put together everything that contributed to their hedge funds’ collapse early in the COVID-19 pandemic, because really how could the SEC figure out anything quickly even in good times, let alone really bad ones, he’d just lie his head off and expect the his interlocutors to chalk it all up to the coronavirus-induced plunge in the markets.

Unfortunately for them, the SEC had the opposite reaction to quarantine, and things did not go the way Bond-Nelson and his boss allegedly sketched them out. So Bond-Nelson moved on to Plan B:

[SEC Enforcement Director Gurbir] Grewal said that “after Bond-Nelson lied on the record, SEC enforcement staff confronted him on his lies. Realizing that the gig was up, Bond-Nelson took a restroom break during his testimony and he never came back.”

This, of course, was an even worse plan than the first, because the only thing that makes cops even more suspicious than a suspect lying is that suspect running away. At some point during his flight, however, Bond-Nelson appears to have realized that the SEC had already made clear it had the goods on him and would probably be handing them over to the Justice Department. So he did eventually returned to the table, pen in hand to sign his cooperation agreement, with the only fruit of his troubles a likely grueling encounter with the lawyer for his alleged co-conspirator, Tournant, at the latter’s trial, insistently asking why a jury should believe such a treacherous, cowardly lying liar such as himself.

Allianz Cooperator Used Bathroom Break to Run Out on the SEC [Bloomberg via Yahoo!]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.



Allianz Admits To Some Light Securities Fraud

Of course all agree that the real bad guys were the Allianz employees Allianz singularly failed to supervise.


Allianz Still Struggling With Terrible COVID Side Effects

Specifically, a Justice Department probe to go along with the SEC investigation and shareholder lawsuits.


Turns Out Forging An Investor’s Signature Is More Than Just ‘Bad Judgment’

According to the SEC and Justice Department, it, along with other things, is fraud.


If You’re Gonna Inflate Valuations, Best To Avoid The ‘Impossible’

Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. Then it’s fine.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Older Brother Sells Out Younger Brother In Alleged Crypto Hedge Fund Fraud, But Notes That Real Villain Is SEC

If they’d just unfreeze those assets, his little bro would quickly get them back to his alleged victims, he’s pretty sure.

(Getty Images)

SEC, Which Saw No Evidence Of Hedge Fund’s Fraud At First Glance, Sues Hedge Fund For Fraud

TCA Fund Management preferred the old, lazy, whistleblower-hating SEC.


Prosecutors Pretty Sure You Can’t Lose Your Banks $10 Billion Legally

Which is bad news for Bill Hwang and the Archegos crew.