Och-Ziff, Libya SWF Dealings Under Investigation

Mar 19 2014 | 10:58am ET

Och-Ziff Capital Management warned yesterday that it is facing a criminal investigation over its relationship with Libya’s sovereign wealth fund.

The hedge fund giant disclosed the Justice Department probe in its restated financials. Och-Ziff said it also remains subject to a civil probe by the Securities and Exchange Commission.

According to a report last month in The Wall Street Journal, Och-Ziff is among a number of prominent financial firms under investigation for alleged bribery at the Libyan fund. Others facing scrutiny include Blackstone Group, Goldman Sachs and JPMorgan Chase.

The Och-Ziff investigation “concerns an investment by a foreign sovereign wealth fund in some Och-Ziff funds in 2007 and investments by some of the funds, both directly and indirectly, in a number of companies in Africa,” the hedge fund said. It is “unable to determine how the investigation will conclude” and warned that an “adverse outcome could have a material effect” on it.

Och-Ziff added that it is cooperating with “a number of ongoing regulatory investigations and examinations.”

The hedge fund said it received its first requests for information from the Justice Department in 2011.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of