BALTIMORE — A Baltimore-based money management firm has settled a U.S. Department of Justice probe of an affiliate that managed investments for the Libyan government when Moammar Gadhafi led the country.
The Justice Department said Monday in a statement that Legg Mason Inc. agreed to pay $64.2 million.
In a letter Monday to shareholders, Legg said it also expects to resolve a related U.S. Securities and Exchange Commission case shortly. The company said when the amount in that case is final, "the aggregate amount of the financial penalties and other amounts resulting from the settlements with the Department of Justice and the Securities and Exchange Commission is expected to be approximately $71 million."
The investigation concerned two employees at Legg's Permal hedge fund who paid bribes to Libyan officials and their relatives in return for government investments in a third-party financial institution's products. Permal provided investment advisory services to those funds.
Legg cooperated with investigators, avoiding criminal prosecution.