Firm settles with Justice Department in Libyan bribery probe
BALTIMORE (AP) — A Baltimore-based money management firm has settled a U.S. Department of Justice probe of an affiliate that managed investments for the Libyan government, which was then led by Moammar Gadhafi.
The Baltimore Sun reports that Legg Mason sent a letter to shareholders Monday announcing that it expects to pay $71 million as part of the settlement with the Justice Department. That number covers financial penalties and other costs. A separate settlement with the U.S. Securities and Exchange Commission is expected soon.
The foreign corruption investigation concerned two employees at Legg’s Permal hedge fund who paid bribes to Libyan officials and their family members in return for government investments in a third-party financial institution’s products. Permal provided investment advisory services to those funds.
Legg cooperated with investigators, avoiding criminal prosecution.
Information from: The Baltimore Sun, http://www.baltimoresun.com