Since it was restating its financials anyway after the SEC made it consolidate some CLOs, Och-Ziff Capital Management thought it might mention that the SEC (and Justice Dept.) is also interested in some bribery that may or may not have gone on before the Libyan dictator’s end.

Och-Ziff began receiving subpoenas from the Securities and Exchange Commission and requests for information from the Justice Department in 2011, the filing said. The hedge-fund operator said the investigation “concerns an investment by a foreign sovereign wealth fund in some of the Och-Ziff funds in 2007 and investments by some of the funds, both directly and indirectly, in a number of companies in Africa.”

The investigation involves the Foreign Corrupt Practices Act, Och-Ziff said. That law prohibits U.S. companies and companies listed on U.S. stock exchanges from paying bribes to foreign officials. U.S. authorities consider employees of state-owned investment funds, such as the Libyan Investment Authority, to be foreign officials….

Och-Ziff said it was “unable to determine how the investigation will conclude” and that an “adverse outcome could have a material effect” on its business and “financial condition.”

Och-Ziff also said that it had cooperated with “a number of ongoing regulatory investigations and examinations, both domestically and internationally” and said it expected further regulatory scrutiny in the future.

Och-Ziff Discloses Probe Into Dealings With Libyan Firm [WSJ]

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Comments (3)

  1. Posted by Guest | March 19, 2014 at 3:35 PM

    donation to DNC + dropped charges = Foreign Corrupt Practices fine

  2. Posted by guest | March 19, 2014 at 3:56 PM

    You forgot the deferred prosecution agreement includes hiring an FCPA "monitor" = $250K/yr part-time gig for ex-SEC staffer who specialized in FCPA enforcement.

  3. Posted by Guest | March 19, 2014 at 8:50 PM

    This is actually a pretty good Shazar post. Newsworthy and half-funny tags