Legg Mason Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan Officials
Legg Mason Inc., a Maryland-based investment management firm, has settled with the DOJ and agreed to pay $64.2 million to resolve alleged violations of the FCPA in connection with its participation through a subsidiary in a Libyan bribery scheme.
Between 2004 and 2010, Legg Mason subsidiary Permal Group Ltd. partnered with French bank Société Générale S.A. to solicit business from state-owned financial institutions in Libya. Société Générale paid commissions on seven transactions to a Libyan broker to benefit Permal, which managed funds invested by the Libyan state institutions, thus earning profits of approximately $31.6 million.
Legg Mason’s payment includes a penalty of $32.625 million to be paid to the U.S. Treasury within five days of the agreement, and disgorgement of $31.617 million, which will be credited against disgorgement paid to other law enforcement authorities within the first year of the agreement. The company is further obligated to cooperate with authorities and to enhance its compliance program.
