Litigation Releases (Gregoire P. Tournant; Trevor L. Taylor; Stephen G. Bond-Nelson)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26432 / December 5, 2025

Securities and Exchange Commission v. Gregoire P. Tournant, Trevor L. Taylor, and Stephen G. Bond-Nelson, No. 1:22-cv-4016 (S.D.N.Y. filed May 17, 2022)

SEC Obtains Final Judgments Against Three Allianz Portfolio Managers

On November 26, 2025, the Securities and Exchange Commission (SEC) obtained final judgments against three former senior portfolio managers at Allianz Global Investors U.S. LLC (AGI US). The SEC previously charged Gregoire P. Tournant (Tournant), Trevor L. Taylor (Taylor), and Stephen G. Bond-Nelson (Bond-Nelson) with a massive fraudulent scheme that concealed the significant downside risks of a complex options trading strategy called "Structured Alpha."

According to the SEC's complaint, Structured Alpha's Lead Portfolio Manager, Tournant, orchestrated the multi-year scheme to mislead investors who invested approximately $11 billion in Structured Alpha and paid over $550 million in fees. It further alleges that, with assistance from Co-Lead Portfolio Manager, Taylor, and Portfolio Manager, Bond-Nelson, Tournant manipulated numerous financial reports and other information provided to investors to conceal the magnitude of Structured Alpha's risk and performance.

In parallel criminal proceedings, Tournant was sentenced to: (i) three years of probation; (ii) 18 months of home incarceration; (iii) a fine of $250,000; and (iv) forfeiture of $17,577,908. Taylor was sentenced to: (1) three years of probation; (ii) a fine of $4,000; and (iii) forfeiture of $13,460,708. Bond-Nelson was sentenced to: (i) three years of probation; (ii) three months of home confinement; (iii) a fine of $4,000; and (iv) forfeiture of $1,610,465.

Without admitting or denying the allegations in the complaint, Tournant consented to the entry of a final judgment enjoining him from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder and ordering a permanent industry bar. Tournant's final judgment ordered him to pay disgorgement of $17,577,908, Taylor's ordered disgorgement of $13,460,708, and Bond-Nelson's ordered disgorgement of $1,610,465, all of which was deemed satisfied by the respective forfeiture orders in the parallel criminal proceedings. Taylor and Bond-Nelson previously consented to civil injunctions and industry bars.

The SEC's investigation was conducted by Jonathan C. Shapiro and supervised by Reid A. Muoio and Eric Werner of the Enforcement Division's Complex Financial Instruments Unit. The litigation was led by John Bowers under the supervision of Melissa J. Armstrong. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the U.S. Postal Inspection Service.