BALTIMORE (AP) - 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, which was then led by Moammar Gadhafi.

The Baltimore Sun reports that Legg Mason[1] sent a letter to shareholders Monday announcing that it expects to pay $71 million as part of the settlement with the Justice Department. That number covers financial penalties and other costs. A separate settlement with the U.S. Securities and Exchange Commission is expected soon.

The foreign corruption investigation concerned two employees at Legg[2]’s Permal hedge fund who paid bribes to Libyan officials and their family members in return for government investments in a third-party financial institution’s products. Permal provided investment advisory services to those funds.

Legg[3] cooperated with investigators, avoiding criminal prosecution.


Information from: The Baltimore Sun,

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