1MDB Scandal: Malaysia Files Criminal Charges Against Goldman Sachs and Two Employees

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Malaysia has filed criminal charges against Goldman Sachs and two former bankers in connection with a corruption and money laundering investigation at the state-owned investment fund 1 Malaysia Development Berhad (1MDB).

Goldman Sachs has been under scrutiny for its role in helping to raise funds for the 1MDB.

The US bank is being investigated in at least six countries.

Goldman Sachs called the charges “misdirected” and said it would “vigorously defend them”.

The bank added: “The firm continues to co-operate with all authorities investigating these matters.”

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Malaysia filed the charges against Goldman Sachs and its former employees Tim Leissner and Roger Ng.

Tim Leissner served as Goldman’s South East Asia chairman, and left the bank in 2016. Roger Ng was a managing director at Goldman until his departure in May 2014.

Malaysia has also brought charges against former 1MDB employee Jasmine Loo and financier Jho Low.

Malaysia’s attorney general Tommy Thomas said in a statement: “The charges arise from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs.”

Last month, Tim Leissner, Roger Ngand and Jho Low were served with criminal charges in the US in relation to 1MDB.

Tim Leissner pleaded guilty in the US to conspiring to launder money and violating anti-bribery laws.

In that case, prosecutors said Tim Leissner and Roger Ng worked with Jho Low to bribe government officials to win 1MDB business for Goldman Sachs.

US authorities said billions of dollars were embezzled from the state fund to buy art, property, a private jet- and even to help finance the Wolf ofWall Street movie starring Leonardo DiCaprio.

The scandal has prompted investigations around the world and played a role in the election defeat earlier this year of Malaysia’s former PM Najib Razak, who is accused of pocketing $700 million from the fund he set up.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.