Shares of Och-Ziff Capital Management Group LLC OZM hit a new 52-week low of $2.89 on Tuesday after the company was alleged to have engaged in illegal bribing activity.
The hedge fund is being pursued by the Justice Department for allegedly bribing government officials in Africa. Specifically, the fund is being accused of bribing Libyan officials to win an investment mandate from the country's sovereign wealth fund.
The hedge fund is also alleged to have engaged in illegal activities that may have funded payments to the Democratic Republic of Congo's working government.
The Wall Street Journal reported that U.S. regulators are seeking a $400 million fine, while the U.S. Justice Department is pushing the hedge fund to plead guilty.
The Wall Street Journal added that the hedge fund's lawyers argued the fund shouldn't be held criminally liable and any illegal behavior wasn't widely known at the firm.
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