Och-Ziff May Face Consequences Beyond Fine in Bribery Case
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Daniel S. Och, the chief executive of of Och-Ziff Capital Management, agreed to pay $2.2 million to settle a record-keeping violation with the Securities and Exchange Commission. CreditRick Maiman/Bloomberg
Defendants often point to the collateral consequences of a prosecution and civil enforcement action when arguing that they should not be punished too severely. The settlement by the hedge fund Och-Ziff Capital Management and its founder, Daniel S. Och, for paying bribes to obtain natural resource deals in Africa tests how much they will endure beyond the settlement’s fines and disgorged profits.
Och-Ziff entered into a deferred prosecution agreement with the Justice Department for dispensing millions of dollars in bribes in Libya, the Democratic Republic of Congo, Chad and Niger in violation of the Foreign Corrupt Practices Act. That law prohibits giving anything of value to a foreign official to “obtain or retain business,” and has been used recently to police Wall Street firms seeking investment opportunities overseas. The firm will pay a fine of about $213 million to the Justice Department and must avoid any violations during the three-year term of the agreement…
Och-Ziff May Face Consequences Beyond Fine in Bribery Case
