Allianz Global Investors U.S. LLC reached a $6 billion deal with the SEC resolving claims tied to a scheme that saw investors lose billions after the COVID-19 pandemic crippled U.S. markets. 

Pension funds for teachers, clergy, bus drivers, engineers and other investors were defrauded, with losses and downside risks concealed for years, according to a statement released by Securities and Exchange Commission Chair Gary Gensler. The case marks the latest white-collar crackdown under the Biden administration that targeted corporate employees, and required an admission of guilt. The policy change shifts away from non-prosecution or deferred prosecution agreements used in the past.