Pimco top portfolio risk manager gone after investigation into inappropriate touching

The head of portfolio risk management at Pimco, Bill De Leon, resigned Friday following a week-long internal investigation into his alleged behavior at a charity event in May 2017, according to a published eport. According to a source cited by Financial News, Mr. De Leon allegedly touched a lower-ranking Pimco employee inappropriately. Pacific Investment Management Co. quickly replaced him, installing Sudi Mariappa as its top risk manager. Mr. Mariappa, who has been with Pimco for more than dozen years, has overseen teams managing about $80 billion in assets, according to Financial News. He is a veteran of Salomon Brothers, Long-Term Capital Management and GLG Partners. Pimco said Mr. Mariappa will step will step down as portfolio manager of its PLUS funds, which invest in stock futures and bonds, and will be replaced by Mohsen Fahmi as lead manager on many of those funds, according to a source. Mr. De Leon joined Pimco in 2007 and was a portfolio manager specializing in derivatives and absolute-return investments before taking his most recent post. He also was on the board of the International Swaps and Derivatives Association trade group. He was named a managing director in 2012.