The Libyan Investment Authority sued JPMorgan Chase & Co. in London, saying the lender paid more than $6 million in bribes to secure a $200 million bond deal.
JPMorgan’s Bear Stearns sent the payments to businessman Walid Al-Giahmi — a close friend of the Qaddafi regime — to arrange deals in a contract that was no more than a “sham” agreement, according to London court documents released Tuesday. The bank has until next month to submit defense documents in the case, which was filed in April. A spokesman declined to comment.
The LIA, an oil wealth fund set up under former dictator Moammar Qaddafi, is pursuing a number of claims against major banks seeking to nullify unprofitable deals that may have been influenced by bribes. Societe Generale SA paid more than $1.7 billion in settlements and regulators’ fines over claims the bank paid a bribe to Giahmi to arrange deals.
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