In the Courts

Oz Africa has formally asked Judge Garaufis to reconsider his Aug. 29, 2019 ruling granting victim status to around fifty former shareholders in Canadian mining company Africo Resources Ltd (Africo) under the Mandatory Victims Restitution Act, 18 U.S.C. §3663A (MVRA) for losses arising from a mining venture in the Democratic Republic of Congo (DRC). Judge Garaufis' ruling, unsealed on September 3, relates to events occurring over 10 years ago when agents related to Oz Africa bribed Congolese judges to secure favorable court rulings as it sought control over the Kalukundi copper and cobalt mine over which Africo held exclusive rights in the DRC. The former investors claim to be owed up to $1.8 billion in restitution, arguing that the FCPA settlement has failed to hold Och-Ziff fully accountable for their losses. The application for restitution was opposed by both Och-Ziff and the Government and further complicates the final resolution of the deal reached between Och Ziff, Oz Africa and U.S. prosecutors over three years ago.

Africo first unwittingly lost control over the mine in 2006, when its interest was sold without notice to a local DRC mining company, Akam Mining SPRL (Akam), in satisfaction of a $3 million ex parte default judgment obtained by a former Africo employee. After learning that its mining rights had been lost, Africo launched court action in 2007 to set aside the earlier default judgment. At around this time, Oz Africa had entered into a partnership with Israeli billionaire Dan Gertler and agreed to help him acquire Africo's interest in the mine via a special-purpose entity to be funded by Och-Ziff and controlled by Gertler. (Gertler who was not named in the original settlement documents was named by Judge Garaufis in his ruling.) In order to be successful in the takeover they needed to ensure that Africo believed it would lose its court case against Akam — an outcome that was secured by Gertler's in-country agent paying bribes to the DRC judges hearing the case. Unware of the scheme, in June 2008 Africo shareholders voted to accept the takeover, giving control of the mine to Gertler. With US sanctions imposed on Gertler in December 2018, he has continued to deny any wrongdoing in the DRC. The mine remains undeveloped today.