It has been known for some time that the Justice Department and the Securities and Exchange Commission have been investigating investment banks over their dealings with the Libyan sovereign wealth fund, known as the Libyan Investment Authority (LIA). There is an interesting civil trial currently in session in London’s High Court between Goldman Sachs and the LIA that may well provide insight to potential Foreing Corrupt Practices Act issues.
According to articles in the Financial Times, the New York Times, and elsewhere, testimony brought forth in the Goldman/LIA case might put Goldman under some amount of Justice Dept. and SEC scrutiny for potential FCPA violations. One LIA official testified that Goldman entertained LIA staff and provided them with chauffeur-driven cars during a London-based training course and that LIA had a “special relationship” with Goldman.
