This Hedge Fund Is Expected to Pay $400 Million to Settle Bribery Probes by Reuters @FortuneMagazine 4:53 AM EDT E-mail Tweet Facebook Linkedin Share icons Och-Ziff Capital Management Group ozm 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. See also: Walmart Is Being Sued for Allegedly Bribing the Mexican Government 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% after news of the settlement broke. The imminent deal was first reported by Bloomberg News.