Blackstone, Och-Ziff Probed Over Libya Dealings

Feb 3 2014 | 3:58pm ET

The Blackstone Group and Och-Ziff Capital Management have become ensnared in the U.S. government's widening probe into alleged bribery at Libya's sovereign wealth fund.

The investigation began as a Securities and Exchange Commission civil probe into Goldman Sachs' relationship with the Libyan Investment Authority, which has sued the bank over losses suffered during the financial crisis. The inquiry has grown into a criminal investigation by the Justice Department into Goldman, Blackstone, Och-Ziff, Credit Suisse, JPMorgan Chase and Société Générale, The Wall Street Journal reports.

At issue is whether any of the firm paid bribes to LIA officials, which is barred by U.S. law. The firms were among those that sought to attract Libyan business around the financial crisis, after the country, long an international pariah, had moved to improve its relations with the U.S. and other western countries. Alleged evidence of wrongdoing emerged following Libya's 2011 revolution, which overthrew longtime military ruler Muammar Gaddafi.

The Justice Department is investigating the role of so-called "fixers" who linked investment firms with members of the Gaddafi regime, acting similarly to placement agents. Prosecutors are working to determine whether those "fixers" passed illegal payments on to Libyan officials.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.