SEC Charges Two Former Och-Ziff Executives With FCPA Violations
The SEC charged former Och-Ziff executives Michael L. Cohen and Vanja Baros with orchestrating a bribery scheme that used tens of millions of dollars in investor funds to pay high-level African officials in Libya, Chad, Niger, Guinea, and the DRC to secure investments and mining deals, violating the FCPA and securities laws, with the SEC seeking monetary penalties and other remedies.
The SEC charged Michael L. Cohen and Vanja Baros with violating the Foreign Corrupt Practices Act (FCPA) and Section 30A of the Securities Exchange Act by directing tens of millions of dollars in bribes to government officials in Libya, Chad, Niger, Guinea, and the Democratic Republic of the Congo to secure sovereign wealth fund investments and mining deals for Och-Ziff. Cohen is additionally charged with violating Sections 206(1) and 206(2) of the Investment Advisers Act for breaching fiduciary duties. The SEC is seeking monetary penalties and other remedies, following prior settlements with Och-Ziff and two other executives, with the investigation supported by the DOJ, FBI, IRS, and multiple international financial regulators.
The SEC charged former Och-Ziff executives Michael L. Cohen and Vanja Baros as the masterminds behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act (FCPA) by using tens of millions of dollars in investor funds to bribe high-level government officials across Africa. These bribes, paid through intermediaries, were designed to secure investments from the Libyan Investment Authority and to influence mining deals in Chad, Niger, Guinea, and the Democratic Republic of the Congo. Cohen is also separately charged with violating fiduciary duties under Sections 206(1) and 206(2) of the Investment Advisers Act. The SEC’s complaint alleges that Cohen and Baros were the driving forces behind conduct previously settled by Och-Ziff and two other executives. The agency is seeking monetary penalties, disgorgement, and other remedies, emphasizing the systemic nature of the fraud. The investigation involved extensive collaboration between the SEC, the U.S. Department of Justice, the FBI, the IRS Criminal Investigations Division, and multiple international regulators including the UK’s Financial Conduct Authority and financial authorities in Guernsey, Jersey, Malta, Cyprus, Gibraltar, and Switzerland. This multi-jurisdictional effort underscores the global scale and sophistication of the bribery scheme and the regulatory response to corporate corruption in international finance.
Exhibits & Attached Documents (1)
Extracted insights
- person michael l. cohen
- company och-ziff capital management group
- agency Securities and Exchange Commission
- person vanja baros
- SEC charged Michael L. Cohen and Vanja Baros with FCPA violations
- Michael L. Cohen headed Och-Ziff's European office
- Vanja Baros served as investment executive on Africa-related deals
- Michael L. Cohen and Vanja Baros caused tens of millions of dollars in bribes to be paid to African government officials
- Michael L. Cohen and Vanja Baros directed bribes to government officials in Chad, Niger, Guinea, and Democratic Republic of the Congo
- Och-Ziff bribery scheme induced Libyan Investment Authority to invest in Och-Ziff managed funds
- Michael L. Cohen charged with violating FCPA, Section 30A of Securities Exchange Act, Sections 206(1) and 206(2) of Investment Advisers Act
- Vanja Baros charged with violating FCPA and Section 30A of Securities Exchange Act
- SEC seeking monetary penalties against Michael L. Cohen and Vanja Baros
- Och-Ziff Capital Management Group previously settled charges in the case
The Securities and Exchange Commission today charged two former executives at Och-Ziff Capital Management Group with being the driving forces behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act (FCPA). Och-Ziff and two other executives previously settled charges against them in the case. The SEC’s complaint filed today alleges that Michael L. Cohen, who headed Och-Ziff’s European office, and an investment executive on Africa-related deals, Vanja Baros, caused tens of millions of dollars in bribes to be paid to high-level government officials in Africa. Their alleged misconduct induced the Libyan Investment Authority sovereign wealth fund to invest in Och-Ziff managed funds. Cohen and Baros also allegedly directed illicit efforts to secure mining deals to benefit Och-Ziff by directing bribes to corruptly influence government officials in Chad, Niger, Guinea, and the Democratic Republic of the Congo. “As alleged in our complaint, Cohen and Baros were the masterminds of Och-Ziff’s bribery scheme that improperly used investor funds to pay bribes through agents and partners to officials at the highest levels of foreign governments,” said Kara Brockmeyer, Chief of the SEC’s FCPA Unit. The SEC’s complaint charges Cohen and Baros with violating the FCPA and Section 30A of the Securities Exchange Act, and aiding and abetting Och-Ziff’s violations. Cohen also is charged with violating Sections 206(1) and 206(2) of the Investment Advisers Act. The SEC is seeking monetary penalties against Cohen and Baros among other remedies. The SEC’s investigation was conducted by Neil Smith and Paul Block of the FCPA Unit and Rory Alex of the Boston Regional Office. The litigation is being led by Marc Jones and Martin Healey of the Boston office. The SEC appreciates the assistance of the Fraud Section of the U.S. Department of Justice, the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, and the Internal Revenue Service’s Criminal Investigations Division. The SEC also appreciates the assistance of the United Kingdom’s Financial Conduct Authority as well as the Guernsey Financial Services Commission, Jersey Financial Services Commission, Malta Financial Services Authority, Cyprus Securities and Exchange Commission, Gibraltar Financial Services Commission, and Swiss Ministry of Justice.
The Securities and Exchange Commission today charged two former executives at Och-Ziff Capital Management Group with being the driving forces behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act (FCPA). Och-Ziff and two other executives previously settled charges against them in the case. The SEC’s complaint filed today alleges that Michael L. Cohen, who headed Och-Ziff’s European office, and an investment executive on Africa-related deals, Vanja Baros, caused tens of millions of dollars in bribes to be paid to high-level government officials in Africa. Their alleged misconduct induced the Libyan Investment Authority sovereign wealth fund to invest in Och-Ziff managed funds. Cohen and Baros also allegedly directed illicit efforts to secure mining deals to benefit Och-Ziff by directing bribes to corruptly influence government officials in Chad, Niger, Guinea, and the Democratic Republic of the Congo. “As alleged in our complaint, Cohen and Baros were the masterminds of Och-Ziff’s bribery scheme that improperly used investor funds to pay bribes through agents and partners to officials at the highest levels of foreign governments,” said Kara Brockmeyer, Chief of the SEC’s FCPA Unit. The SEC’s complaint charges Cohen and Baros with violating the FCPA and Section 30A of the Securities Exchange Act, and aiding and abetting Och-Ziff’s violations. Cohen also is charged with violating Sections 206(1) and 206(2) of the Investment Advisers Act. The SEC is seeking monetary penalties against Cohen and Baros among other remedies. The SEC’s investigation was conducted by Neil Smith and Paul Block of the FCPA Unit and Rory Alex of the Boston Regional Office. The litigation is being led by Marc Jones and Martin Healey of the Boston office. The SEC appreciates the assistance of the Fraud Section of the U.S. Department of Justice, the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, and the Internal Revenue Service’s Criminal Investigations Division. The SEC also appreciates the assistance of the United Kingdom’s Financial Conduct Authority as well as the Guernsey Financial Services Commission, Jersey Financial Services Commission, Malta Financial Services Authority, Cyprus Securities and Exchange Commission, Gibraltar Financial Services Commission, and Swiss Ministry of Justice.