Settlements Explained
Menu

Och-Ziff deferred prosecution agreement and OZ Africa guilty plea over DRC and Libya bribery (2016)

Last checked: 22 October 2026 · Case records

On 29 September 2016 the U.S. Department of Justice said Och-Ziff Capital Management Group LLC entered a three-year deferred prosecution agreement and its subsidiary OZ Africa Management GP LLC pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act 1. The criminal penalty was US$213,055,689 1. DOJ said the companies admitted bribery schemes in the Democratic Republic of the Congo and Libya 1. The SEC ordered about US$199 million in disgorgement and interest, for a combined total of about US$412 million 1,3.
Resolution type
Deferred prosecution agreement for Och-Ziff Capital Management Group LLC, guilty plea by OZ Africa Management GP LLC, and an SEC cease-and-desist order 1,3
Date
29 September 2016 1,2 3
Agencies
DOJ Criminal Division Fraud Section, U.S. Attorney's Office for the Eastern District of New York, and the Securities and Exchange Commission 1,2 3
Court and judge
Eastern District of New York, U.S. District Judge Nicholas G. Garaufis 1,2
Charges
Och-Ziff: two counts of conspiracy to violate the FCPA anti-bribery provisions, one count of falsifying books and records and one count of failing to maintain adequate internal controls. OZ Africa: one count of conspiracy to violate the FCPA anti-bribery provisions 1
Criminal penalty
US$213,055,689, which DOJ says reflects a 20 percent reduction off the bottom of the Sentencing Guidelines fine range 1
SEC amount
US$173,186,178 disgorgement plus US$25,858,989 interest, a total of US$199,045,167, against Och-Ziff and OZ Management LP 3
Combined total
About US$412 million in U.S. criminal and regulatory penalties, according to DOJ 1
Admission
DOJ says Och-Ziff "admitted" the Libya agent arrangement and the falsified books and records, and that the DRC payments were made "the companies admitted" 1
Status
Three-year DPA with an independent compliance monitor for three years. OZ Africa sentencing was set for 29 March 2017 1,2

The DOJ resolution

DOJ said Och-Ziff, a New York hedge fund manager, entered a deferred prosecution agreement on a four-count criminal information 1. The EDNY release says Och-Ziff "admitted" to the conduct in that information 2. OZ Africa, a wholly owned subsidiary, pleaded guilty on the same day to a one-count criminal information 1.

DOJ said the combined criminal penalty for both companies is US$213,055,689 1. It says the figure reflects a 20 percent reduction off the bottom of the Sentencing Guidelines range for cooperation 1. DOJ said Och-Ziff did not voluntarily self-disclose the conduct and that this was a factor in the resolution 1.

Och-Ziff agreed to put in place internal controls and to retain a compliance monitor for three years 1. EDNY said OZ Africa sentencing was scheduled for 29 March 2017 2. This page has not confirmed the sentence imposed on OZ Africa or how the DPA ended.

Conduct described by DOJ

Democratic Republic of the Congo. The DOJ Office of Public Affairs release says that between 2008 and 2012 Och-Ziff entered into several DRC-related transactions with a businessman who "paid tens of millions of dollars in bribes to DRC officials" 1. It says these led to investment opportunities that produced more than US$90 million in profits for Och-Ziff 1. The EDNY release gives different wording. It says the businessman paid "more than one-hundred million dollars in bribes" between 2005 and 2012, and that Och-Ziff's transactions with him ran from 2008 to 2011 2. Both releases are dated 29 September 2016.

DOJ said that in late 2008 an Och-Ziff employee directed that references to payments to DRC officials be removed from a final audit report 1,2.

Libya. DOJ said Och-Ziff admitted that from 2007 it used a third-party agent, without formal approval or due diligence, to help win an investment from the Libyan Investment Authority 1. EDNY said Och-Ziff received a US$300 million investment from the Libyan Investment Authority in late November 2007 2. DOJ said Och-Ziff admitted agreeing to pay the agent a US$3.75 million "finder's fee" knowing part of it would go to Libyan officials, and that it recorded the payment through a sham consulting agreement 1.

Other countries. DOJ said Och-Ziff admitted failing to maintain internal accounting controls that would have prevented bribe payments in the DRC, Libya, Chad and Niger 1. EDNY said Och-Ziff "reaped more than $210 million in illegal profits" across all the conduct in the resolutions 2.

The SEC order

The SEC said on 29 September 2016 that Och-Ziff and OZ Management LP agreed to pay US$173,186,178 in disgorgement and US$25,858,989 in interest, a total of US$199,045,167 3. The SEC release names Libya, Chad, Niger, Guinea and the Democratic Republic of the Congo 3.

The SEC said Daniel S. Och agreed to pay US$1.9 million in disgorgement and US$273,718 in interest 3. It said Och and Joel M. Frank consented to the order without admitting or denying the findings, and that a penalty against Frank would be set later 3. The SEC release does not say whether the companies admitted or denied the findings 3.

Related individual case

DOJ said Samuel Mebiame, a Gabonese national, was charged by criminal complaint on 16 August 2016 with conspiring to bribe officials for mining rights in Chad, Niger and Guinea 1,2. DOJ said a complaint is an accusation and that a defendant is presumed innocent until proven guilty 1. EDNY said Mebiame pleaded guilty on 9 December 2016 to one count of conspiracy to violate the FCPA, and that Judge Garaufis sentenced him to 24 months' imprisonment on 31 May 2017 4.

Common questions

Did Och-Ziff plead guilty?

The parent company did not. It entered a deferred prosecution agreement 1. Its subsidiary OZ Africa Management GP LLC pleaded guilty to one count of conspiracy to violate the FCPA 1.

Did Och-Ziff admit the bribery?

DOJ says Och-Ziff admitted the Libya agent arrangement, the falsified records and the internal controls failures, and that the DRC payments were admitted by the companies 1. EDNY says Och-Ziff admitted the conduct in the four-count information 2.

How much did Och-Ziff pay?

A criminal penalty of US$213,055,689 1 and SEC disgorgement and interest of US$199,045,167 3, about US$412 million combined 1.

Was a monitor appointed?

DOJ said Och-Ziff agreed to retain a compliance monitor for three years 1.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.

Sources

  1. U.S. Department of Justice, Office of Public Affairs: Och-Ziff Capital Management Admits to Role in Africa Bribery Conspiracies and Agrees to Pay $213 Million Criminal Fine, release 16-1130 (29 September 2016)
  2. U.S. Attorney's Office, Eastern District of New York: Och-Ziff Capital Management Admits To Role In Africa Bribery Conspiracies And Agrees To Pay $213 Million Criminal Fine (29 September 2016)
  3. U.S. Securities and Exchange Commission: Och-Ziff Hedge Fund Settles FCPA Charges, release 2016-203 (29 September 2016)
  4. U.S. Attorney's Office, Eastern District of New York: Gabonese-French Dual Citizen Sentenced To 24 Months Imprisonment For Bribing African Officials (31 May 2017)

Related