Sunday, 29 November 2015
Last updated 1 day ago
Apr 18 2008 | 3:03am ET
Och-Ziff Capital Management Group said it has been ensnared in a Japanese fraud.
The Wall Street Journal reports that the New York-based hedge fund lost about US$77 million in the scheme, which also caught Lehman Brothers. Och-Ziff said that the loss has already been written off and was reflected in the newly-public firm’s most recent results statement.
The fraud allegedly involved employees of Japanese trading firm Marubeni Corp., and began in November. Those Marubeni staffers seem to have used the firm’s offices, computers and letterheads to raise phony bridge loans for Japanese hospitals to buy new medical equipment. A Hong Kong-based Och-Ziff affiliate made the loans, the firm said.
Lehman Brothers last month field suit in Tokyo seeking to retrieve its US$344 million. It names Marubeni as a defendant, though the trading firm denies any involvement and said that Lehman should have been “suspicious” about the allegedly phony documents.
“The investment, which has not yet been recovered, is not material to any of Och-Ziff’s funds or to its publicly-traded holding company,” Och-Ziff said in a statement. “The firm is currently pursuing all avenues to recover its investment.
Och-Ziff, one of the largest hedge fund managers in the world with more than $32 billion in assets under management, went public in November.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…