Kirkland & Ellis Discusses the Risks of Subsidiary Pleas in Criminal Resolutions: Och-Ziff

In 2016, hedge fund Och-Ziff Capital Management Group (“Och-Ziff”) entered into one of the largest Foreign Corrupt Practices Act (“FCPA”) resolutions ever: It agreed to pay a total of $412 million to the Department of Justice and the Securities and Exchange Commission; it agreed to a three-year monitor; and its subsidiary, OZ Africa Management GP, LLC (“OZ Africa”), pleaded guilty to conspiring to violate the anti-bribery provisions of the FCPA. A new decision by the U.S. District Court for the Eastern District of New York, however, suggests that this resolution may only be the beginning.

After OZ Africa pleaded guilty, … Read more