New York (HedgeCo.Net) – The US Justice Department has started looking at banks, hedge funds and private equity funds that may have broken anti-bribery laws in their dealings with the Libyan sovereign wealth fund, which is run by Libya’s government, WSJ reports. The Libyan fund says the US bankers knew the country was weak and took advantage of them.
The same fund is currently suing Goldman Sachs for more than $1 billion in London’s high court, alleging that the investment bank exploited the lack of financial expertise at the Libyan investment fund. The Guardian reports that the Libyan sovereign wealth fund is accusing Goldman Sachs of causing approximately $1 billion in losses between 2007 and 2011, while making $350 million in profits for itself.
The Foreign Corrupt Practices Act of 1977 makes it illegal for entities to make payments to foreign government officials to assist in obtaining or retaining business. “Specifically, the anti-bribery provisions of the FCPA prohibits payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.” The DOJ states.
Besides Goldman Sachs, the Justice Department and other investigators are looking into Credit Suisse, J.P. Morgan, Société Générale, Blackstone Group and hedge fund operator Och-Ziff Capital Management, the WSJ reports.
Editor for HedgeCo.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!