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A huge US hedge fund is borrowing $120 million to settle a bribery case

May 19, 2016, 19:01 IST

Courtesy Gulfstream

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Och-Ziff, a US hedge fund managing $42 billion (£28.75 billion) worth of assets, has borrowed over a hundred of million dollars for a bribery settlement with government officials, which is set to cost more than $200 million in total.

The firm has been under investigation by the US Department of Justice for the alleged bribery of African governments, including Congo and Libya.

The Financial Times reported that the firm borrowed $120 million to help pay for the settlement with the US in 2014.

However, in the same year, Och-Ziff also took out a $49 million loan in 2014 to buy a private jet.

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A spokesman for the Och-Ziff declined to comment on the report.

The firm disclosed the investigation in 2014 and since then its shares have more than halved in value. In April, Reuters reported that the final settlement settlement could reach up to $400 million.

Och-Ziff is one of the world's largest publicly traded hedge fund and was founded in 1994.

Here's the chart of its share performance over the past seven years:

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The firm disclosed in its 2014 annual report that founder, Daniel Och used the jet "from time to time," the FT said.

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