Och-Ziff Capital Management Group LLC (OZM) fell the most in three weeks after the Wall Street Journal reported that the hedge-fund firm run by Daniel Och helped finance controversial oil and mining deals in Africa.
Och-Ziff made two loans with a total value of $234 million to companies controlled by Israeli billionaire Dan Gertler, the newspaper said, citing documents. The loans were routed through offshore companies, the paper said.
Och-Ziff, based in New York, fell as much as 10 percent, the biggest intraday decline since April 7. It dropped 9.8 percent by 12:13 p.m. in New York, bringing losses this year to 21 percent.
The firm received subpoenas starting in 2011 from the U.S. Securities and Exchange Commission as part of a probe into possible violations of the Foreign Corrupt Practices Act, the New York-based company said in a March 19 regulatory filing.
Gertler contests any accusations of wrongdoing in his Congo dealings, a spokesman for the investor told the Journal.
Peter Ogden, a spokesman for Gertler at Maitland Consultancy Ltd. in London, said he couldn’t immediately comment on the story, as did Jonathan Gasthalter, a spokesman for Och-Ziff at Sard Verbinnen & Co.
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