Och-Ziff Case Raises Issue of “Bad Actor’ Rule
Irwin Kishner was quoted in Hedge Fund Alert regarding settlement negotiations between Och-Ziff Capital and the U.S. Justice Department for charges related to the firm’s investments and marketing practices in Africa. Under the Dodd-Frank Act and its “bad-actor” rule, investment firms or employees found guilty of felonies or misdemeanors, or that are subject to certain SEC orders, no longer qualify to offer private securities for up to 10 years. Kishner told the publication that the SEC has the power to grant waivers to enforcement of the Bad Actor rule. “So as part of the negotiations [with Och-Ziff], that topic would come up,” he said.