Och-Ziff Capital Management Group LLC, a hedge fund incorporated in Delaware and headquartered in New York, controlled a variety of investment vehicles through myriad subsidiaries. The company provided investment advisory and management services to those vehicles in return for management fees and incentive income. Och-Ziff’s common stock was registered with the SEC and listed on the New York Stock Exchange.
OZ Management LP was a subsidiary of Och-Ziff that provided asset management services to Och-Ziff investor funds.
OZ Africa Management GP, LLC was a wholly-owned subsidiary of OZ Management and held Och-Ziff's interests for its joint venture in Africa.
Between about 2005 and 2015, OZ Africa Management was part of a scheme with Och-Ziff to pay bribes to government officials of the Democratic Republic of the Congo in order to gain access to the government-controlled mining sector. These bribes were made through a Congolese business partner who was well connected in the Congolese government. In all, over $100 million in bribes were paid, which generated revenues of over $342 million and profits of over $91 million for Och-Ziff.
On September 29, 2016, OZ Africa Management pled guilty to a single count of conspiracy to violate the anti-bribery provisions of the FCPA. As part of its plea agreement, the company agreed to implement enhanced anti-corruption compliance policies and procedures. No fine was imposed on OZ Africa Management in light of the criminal penalty levied against the company's parent, Och-Ziff, of $213,055,689 for the same misconduct in its separate deferred prosecution agreement with the DOJ.
A criminal complaint was filed on August 12, 2016 in the district court for the Eastern District of New York against Samuel Mebiame, a Gabonese national, based on his involvement in the Och-Ziff bribery scheme. On December 9, 2016, the DOJ filed an Information in the Eastern District of New York against Mebiame alleging conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, Mebiame pled guilty to the charge. On June 14, 2017, the court sentenced Mebiame to 2 years in prison and ordered him to pay a mandatory assessment of $100.
In a related proceeding, on October 5, 2017, the DOJ filed a ten count indictment in the Eastern District of New York against Michael L. Cohen, a former Executive Managing Director at Och-Ziff, alleging (1) conspiracy to commit investmet adviser fraud, (2) investment adviser fraud, (3) conspiracy to commit wire fraud, (4-7) wire fraud, (8) conspiracy to obstruct justice, (9) obstruction of justice, and (10) making false statements. Cohen has also been sued by the SEC in a separate proceeding. Both cases are ongoing.
