RBC Capital Markets analyst Bulent Ozcan reports that Och-Ziff Capital Management Group LLC (NYSE:OZM) is being investigated by the Department of Justice (DOJ) in his report dated March 19, 2014.
Och-Ziff discloses investigation by SEC
The Wall Street Journal reported today that Och-Ziff Capital Management Group LLC (NYSE:OZM) disclosed in its most recent 10K filing that it is subject to an investigation by the SEC and the US Department of Justice regarding the investment made by the Libyan Investment Authority into Och-Ziff’s funds.
While Och-Ziff mentions this litigation for the first time in its 10K filing, the investigation has been going on since 2011.
The Wall Street Journal reported in 2011 that a number of firms were being investigated by the SEC as to whether they violated bribery laws in dealings with Libya’s sovereign-wealth fund. A Reuters article mentions other than Och-Ziff Capital Management Group LLC (NYSE:OZM), firms such as Goldman Sachs Group Inc (NYSE:GS), HSBC Holdings plc (ADR) (NYSE:HSBC), JPMorgan Chase & Co. (NYSE:JPM), The Blackstone Group L.P. (NYSE:BX) and The Carlyle Group LP (NASDAQ:CG) as being part of this investigation.
Thus, with the outcome of this investigation being uncertain, we do not believe that the sell off is warranted as it is too early to estimate a range of possible losses.
We would expect a lengthy process with an uncertain outcome as to whether this litigation will lead to a material fines for the firms involved.