Major FCPA Enforcement Action -

Including charges against the CEO and CFO for failing to prevent misconduct -

In one of the largest FCPA settlements in history, hedge fund Och-Ziff Capital Management Group LLC (“Och-Ziff”) recently resolved a long-running government inquiry by agreeing to $413 million in financial penalties and a subsidiary guilty plea.

The enforcement action is notable for a number of reasons, not the least of which is that the SEC charged a sitting CEO and CFO of an issuer with violating the FCPA, the first time it has done so in the nearly 40-year history of the statute. For a number of years, U.S. enforcement authorities have threatened to hold financial services companies accountable for overseas corruption, and the Och-Ziff settlement is the first major move in that direction.