Och-Ziff unit to plead guilty in U.S. bribe probe: sources
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
By Nate Raymond
NEW YORK (Reuters) - Och-Ziff Capital Management Group LLC will pay $400 million and a subsidiary will plead guilty to resolve U.S. probes into its involvement in bribes paid to African officials, two people familiar with the matter said on Wednesday.
In a deal expected to be announced on Thursday, the largest publicly traded U.S. hedge fund firm will enter a deferred-prosecution agreement with the U.S. Department of Justice while a subsidiary will plead guilty, the sources said.
The payment will also resolve a related probe by the U.S. Securities and Exchange Commission, the sources said.
A spokesman for Och-Ziff declined to comment. A spokesman for the Justice Department declined comment while SEC representatives did not immediately respond to requests for comment.
U.S. authorities had been investigating whether Och-Ziff violated the Foreign Corrupt Practices Act and was involved in paying bribes to officials in various African countries including Libya and Congo.
New York-based Och-Ziff -- a $39 billion hedge fund founded by Daniel Och -- had earmarked $414 million for a possible settlement with the U.S. government relating to the investigation.
One of the first hedge fund companies to publicly list itself, in 2007, Och-Ziff has increased its assets under management in recent years.
But news of the government's investigation has sent some investors fleeing, and it has lost $5.5 billion in investor outflows so far this year, the company recently disclosed.
In August, Samuel Mebiame, a Gabonese man who U.S. authorities said acted as a "fixer" for a joint-venture involving a hedge fund, was arrested and accused of engaging in a scheme to bribe officials in Africa to obtain mining rights.
Prosecutors did not identify the hedge fund at issue, but its description matched that of Och-Ziff.
A criminal complaint said Mebiame supplied cash and cars to two Niger officials; an S-class Mercedes Benz sedan and rented private Airbus jet to a Guinean official; and travel and shopping expenses for an adviser to Chad's president.
A lawyer for Mebiame, the son of the late former Gabon Prime Minister Leon Mebiame, declined comment on Wednesday.
Shares of Och-Ziff on Wednesday closed up 5.72 percent after news of the settlement broke. The imminent deal was first reported by Bloomberg News.
(Reporting by Nate Raymond in New York; Additional reporting by Jennifer Ablan; Editing by Sandra Maler and Alistair Bell)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Caterpillar (CAT) Reports World Machine Sales Down 18% in Sept.
- Smart Sand (SND) Commences 10.6M Share IPO; Sees Pricing of $15 - $18/Share
- MagnaChip (MX) Announces Order and Final Judgment Issued in Derivative Action Suits
Create E-mail Alert Related CategoriesReuters
Related EntitiesDaniel Och, Hedge Funds
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!