Och-Ziff Capital Management said yesterday that a regulatory probe into its alleged role in Lehman Brother’s collapse went “nowhere,” and that the Lehman estate should look internally for the source of a rumor that may have contributed to its demise.
The Securities and Exchange Commission probe went “nowhere because there is nothing,” Kenneth Bressler, a lawyer for the New York hedge fund, said. Och-Ziff is fighting a subpoena from Lehman seeking e-mails that it claims show a rumor circulating that Lehman had improperly spun-off debt to a hedge fund, R3 Capital Management, founded by a former Lehman executive. Lehman said it is not sure whether Och-Ziff helped start or spread the rumor, or whether it was merely a recipient.
In response, Och-Ziff points the finger at a n unidentified Lehman managing director as the source of the rumors.