German financial regulators have initiated a probe into the country’s leading financial service provider Allianz SE (ETR: ALV) following the disappearance of United States investments funds from the company, this unfortunate incidence is said to have taken place during last year.
In recent times, Allianz has been slapped with various lawsuits related to its structured Alpha Funds and other investigations being carried out by United States Department of Justice and the Securities and Exchange Commission.
Allianz has around $2.9 trillion worth of assets under its management through Allianz Global Investors and Pimco. The two have been in charge of the lost investment funds which are under investigations.
German financial regulator, BaFin is investigating the extent to which high ranking executive in the company were involved in the operations resulting to demise of the investment funds which are piling up to billions of dollars.
Last month, the company issued a statement claiming to have reassessed the risks associated with the investment funds after being approached by the Department of Justice and came to a conclusion that the matter may result to future financial issues.