The settlement relates to proceedings againstthe company and certain of its units and affiliates in connection with paymentsto government officials to obtain investments by a foreign sovereign wealthfund in certain hedge funds managed by certain of the company's units andaffiliates in 2007, and similar payments relating to private investments inAfrica between 2007 and 2011 by private equity funds and investment vehiclesmanaged by the company's units and affiliates.
As part of the settlement, OZ Africa ManagementGP LLC agreed to plead guilty in U.S. District Court for the Eastern Districtof New York on Sept. 29 to one count of conspiracy to violate the anti-briberyprovisions of the ForeignCorrupt Practices Act. The DOJ andOch-Ziff Capital agreed to jointly request that the court not impose any fine inaddition to the payment to be made under the deferred prosecutionagreement.
Under the agreement, the DOJ and the U.S. Attorney's Office for theEastern District of New York agreed to deferprosecution of the charges against the company pending the completion ofcertain obligations undertaken by the company, including payment of a penaltyof about $213.1 million, retention of a compliance monitor for three years andcontinued cooperation with governmental investigations.
Also under the agreement, six months aftercompletion of the obligations and expiration of the agreement, DOJ and theattorney's office will seek dismissal of the charges with prejudice.
The DOJ settlement and the SECsettlement, whichtotal about $412 million, will be paid using cash on hand and an investment ofup to $400 million made by certain of the company's partners through aperpetual preferred stock offering.