After the Wall Street Journal reported that the Department of Justice is considering bringing criminal charges against Och-Ziff Capital Management resulting from the ongoing Foreign Corrupt Practices Act investigation, Citi analyst William Katz says he sees a "number of adverse outcomes" from the leaked settlement talks. The report will likely "elevate already problematic redemptions," Katz tells investors in a research note. Further, he thinks consensus estimates for Och-Ziff are "sharply too high" and that the company may need to reduce distribution payouts to help fund the potential settlement. He keeps a Neutral rating on the shares with a $4 price target. The stock is down 18%, or 69c, to $3.12 in midday trading.