Legg Mason to pay $64 million fine related to Gaddafi-era bribery

Asset manager Legg Mason Inc. will pay a $64.2 million penalty to resolve a criminal probe into the firm's bribing of Libyan officials between 2004 and 2010, the Justice Department said late Monday. The company was accused of violating the Foreign Corrupt Practices Act. Through its subsidiary Permal Group Ltd., the company partnered with the Paris-headquartered Société Générale S.A. and paid bribes to a Libyan "broker" to solicit business from Libyan companies. Through the scheme, Legg Mason made a $31.6 million profit, according to the Justice Department. Legg Mason agreed to pay the Treasury Department $32.6 million within five days, and a disgorgement fee for $31.6 million that will be credited against fees paid to other law enforcement agencies within the first year after inking the agreement. Legg Mason stock ticked up less than 1% in the extended session and closed up a fraction to $37.66 during regular trading. The stock is 10% in the red this year, as the S&P 500 index has gained 2.3%.