• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
FinanceHedge Funds

This Hedge Fund Is Expected to Pay $412 Million to Settle Bribery Probes

By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
September 30, 2016, 3:56 AM ET
Daniel S. Och, chairman and chief executive officer of Och-Z
SWITZERLAND - JANUARY 30: Daniel S. Och, chairman and chief executive officer of Och-Ziff Capital Management Group LLC, speaks during a session on day three of the World Economic Forum in Davos, Switzerland, on Friday, Jan. 30, 2009. This year's meeting, which is titled "Shaping the Post-Crisis World," runs until Feb. 1. (Photo by Adrian Moser/Bloomberg via Getty Images)Adrian Moser/Bloomberg via Getty Images
Add Fortune on Google for similar content.

Och-Ziff Capital Management Group (OZM) will pay $412 million and CEO Daniel Och will pay $2.17 million to resolve U.S. probes into the hedge fund’s role in bribing officials in several African countries, U.S. authorities said on Thursday.

In the first U.S. foreign bribery case against a hedge fund, Och-Ziff subsidiary OZ Africa Management GP LLC pleaded guilty in federal court in Brooklyn to participating in a scheme to bribe officials in the Democratic Republic of Congo.

Och-Ziff meanwhile entered into a deferred prosecution agreement, in which charges related to conduct in Congo, Libya, Chad and Niger would be dropped after three years if it follows the terms of the deal.

“I’d like to emphasize that Och-Ziff has taken substantial remedial efforts to improve its compliance program to ensure something like this can never happen again,” Mark Schonfeld, a lawyer for the New York-based firm, told a federal judge.

See also: Walmart Is Being Sued for Allegedly Bribing the Mexican Government

In total, Och-Ziff will pay $412 million to resolve the U.S. Justice Department and U.S. Securities and Exchange Commission cases, $213 million of which constituted a criminal penalty. It also agreed to the appointment of an independent monitor.

Och agreed to pay $2.17 million to settle SEC charges that caused certain violations along with CFO Joel Frank, who also reached a settlement, the regulator said.

BRIBES TIED TO MINING, SOVEREIGN WEALTH FUND

The deals capped U.S. probes into the $39 billion hedge fund firm that centered in part on Michael Cohen, Och-Ziff’s former London-based head of European investing, who was responsible for investments in Libya and other African countries.

According to authorities, in 2008, Och-Ziff entered into a partnership with an Israeli businessman with close ties to high-level Congolese officials in order to fund his mining-related interests.

At least two employees, though, knew the businessman gained access to these investment opportunities by bribing officials, prosecutors said. Those employees, a person familiar with the matter said, were Cohen and an analyst, Vanja Baros.

Authorities did not name the businessman, whom they said had paid over $100 million in bribes to Congolese officials from 2005 to 2012. But the source said it was Israeli billionaire Dan Gertler.

Ronald White, Cohen’s lawyer, in a statement said “when all the facts are known, it will be clear that he has done nothing wrong.”

Gertler’s Fleurette Group declined comment. A lawyer for Baros did not respond to a request for comment.

Separately, beginning in 2007, an employee, who the source said was Cohen, engaged a London-based middleman to help it secure an investment from the Libyan sovereign wealth fund, the Libyan Investment Authority, prosecutors said.

Prosecutors said Och-Ziff received a $300 million investment into its hedge funds, and soon after entered into an agreement to pay a sham $3.75 million “finder’s fee,” which it knew would be used to pay Libyan officials in exchange.

The Justice Department said its investigation remains ongoing. The probe has resulted in one individual being criminally charged.

In August, Samuel Mebiame, a Gabonese man who U.S. authorities said acted as a “fixer” for a joint-venture involving Och-Ziff, was arrested and accused of engaging in a scheme to bribe officials in Africa to obtain mining rights.

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 declined comment.

Och-Ziff shares closed up 5.65% at $4.49.

The cases in the U.S. District Court, Eastern District of New York, are U.S. v. OZ Africa Management GP LLC, No. 16-cr-00515, and U.S. v. Och-Ziff Capital Management Group LLC, No. 16-cr-00516.

This story has been updated.

 

About the Authors
By Reuters
See full bioRight Arrow Button Icon
By Michelle Toh
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Finance

holland
Arts & EntertainmentMovies
‘The audience is telling the industry something’: even IMAX is stunned by Christopher Nolan’s runaway ‘Odyssey’
By Tatiana SatauaJuly 21, 2026
19 minutes ago
Jamie Dimon says insecurity, not ego, is what destroys the careers of top CEOs
C-SuiteJamie Dimon
Jamie Dimon says insecurity, not ego, is what destroys the careers of top CEOs
By Marco Quiroz-GutierrezJuly 21, 2026
2 hours ago
Welder on a navy boat
SuccessCareers
Jamie Dimon says six-figure shipyard jobs are the new ‘American Dream’—but candidates will need to endure hours of extreme heat, cold, and rain
By Preston ForeJuly 21, 2026
5 hours ago
Knicks star Jalen Brunson
SuccessPersonal Finance
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
5 hours ago
Current price of gold as of July 21, 2026
Personal Financegold prices
Current price of gold as of July 21, 2026
By Danny BakstJuly 21, 2026
7 hours ago
va
North AmericaWhite House
HUD suspends disaster funding to U.S. Virgin Islands housing authority, saying mismanagement has kept $1.3 billion from hurricane survivors
By Danica Coto and The Associated PressJuly 21, 2026
7 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
1 day ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
Economy
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
By Jason MaJuly 20, 2026
1 day ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
Jamie Dimon won't put more of his own money into the long end of the bond market right now—thanks to the $39 trillion national debt
Economy
Jamie Dimon won't put more of his own money into the long end of the bond market right now—thanks to the $39 trillion national debt
By Eleanor PringleJuly 21, 2026
10 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.