Legg Mason Inc. said it will soon complete talks with the federal agencies to resolve a probe related to the activities of its former Permal business that managed assets of Libyan governmental entities in structures established by a third-party financial institution.
The company has set aside $67 million to meet any liability for resolving the Foreign Corrupt Practices Act investigation by both the U.S. Department of Justice and the SEC, the asset manager said in a regulatory filing. The investments were made from 2005 to 2007 and all were terminated no later than 2012.
The company accrued a $67 million charge to the first-quarter earnings, and that estimate partly reflects the net revenues of nearly $31 million earned by the Permal business from managing the assets of Libyan governmental entities.
Any resolution of the matter is not expected to result in restrictions on Legg Mason's ongoing business activities or that of its affiliates, the company said.
Legg Mason in 2016 acquired EnTrust Partners LLC and combined it with Permal.
