On Aug. 27, SEC settled with Legg Mason for bribery in Libya.
- Legg Mason charged with breaching the FCPA in a scheme to bribe Libyan officials.
- Violated internal accounting controls provision of Securities Exchange Act of 1934.
Alleged Violations
- 2004-10 firm’s subsidiary, Permal Group, partnered with a French financial service company to solicit investment business from Libyan state-owned financial entities.
- Mason paid government officials through Libyan middleman to secure investments.
- Libyan financial institutions made $1bn investment, earning firm $31mn revenues.
Sanctions
- Legg Mason to repay $27.6mn plus $6.9mn in prejudgment interest to settle case.
- Follows DoJ Jun. 2018 $33mn fine of Legg Mason, as Soc-Gen affiliate.
