Cohen allegedly violated his fiduciary duties to the charitable foundation by making material misrepresentations and concealing conflicts of interest in connection with a proposed investment in an African mining company, according to the indictment.
Prosecutors said Cohen failed to tell the foundation that one of the sellers of the mining company’s shares in the African mining company owed Cohen $18 million, used to buy a luxury yacht, according to the indictment.
The seller allegedly paid approximately $4 million of the share proceeds to Cohen to partially repay the personal loan. Cohen failed to disclose to the charitable foundation any of the details of what prosecutors call a conflict of interest, the U.S. said.
Cohen is accused of covering up information about the transaction after learning in 2012 that the SEC was investigating Och-Ziff, according to the indictment. Cohen and others, who aren’t named, are accused of obstructing justice for allegedly backdating a letter and making false statements to federal agents and the SEC.
This article was provided by Bloomberg News.