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Goldman Sachs Faces Charges In Malaysia Over Massive Corruption Scandal: NPR

Goldman Sach's headquarters in Manhattan, which will be displayed on December 17th. Malaysia has imposed criminal charges against Goldman Sachs and two of its former executives on Monday on its alleged role in ransacking a multi-billion dollar government investment fund. Spencer Platt / Getty Images hide caption change caption Spencer Platt / Getty Images Goldman Sach headquarters in Manhattan, which will be displayed on December 17th. Malaysia has instituted criminal charges against Goldman Sachs and two of its former executives on Monday about its alleged role in ransacking a multi-billion US government fund. 19659006] Spencer Platt / Getty Images The US bank Goldman Sachs faces criminal charges in Malaysia in connection with an extensive corruption system called the 1MDB scandal. The scandal – involving billions of dollars allegedly siphoned from the "1MDB" Development Fund – has already brought down Malaysia's former prime minister. Several of the Fund's top administrators in Malaysia have been charged with corruption in both US and Malaysian courts. They deny the claims. For the first time, Goldman Sachs, which helped fund administrators increase about $ 6.5 billion, faces charges associated with the probe. Malaysian authorities are looking for billions of dollars in fines and up to 10 years imprisonment for each of the four people. Two former Goldman Sachs bankers, Tim Leissner and Roger Ng Chong Hwa, are among those facing new charges in Malaysia. Also facing charges are two Malaysians: Jasmine Loo Ai Swan, the former Secretary General of the Fund and Jho Low, a…

Goldman Sach’s headquarters in Manhattan, which will be displayed on December 17th. Malaysia has imposed criminal charges against Goldman Sachs and two of its former executives on Monday on its alleged role in ransacking a multi-billion dollar government investment fund.

Spencer Platt / Getty Images

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Goldman Sach headquarters in Manhattan, which will be displayed on December 17th. Malaysia has instituted criminal charges against Goldman Sachs and two of its former executives on Monday about its alleged role in ransacking a multi-billion US government fund. 19659006] Spencer Platt / Getty Images

The US bank Goldman Sachs faces criminal charges in Malaysia in connection with an extensive corruption system called the 1MDB scandal.

The scandal – involving billions of dollars allegedly siphoned from the “1MDB” Development Fund – has already brought down Malaysia’s former prime minister. Several of the Fund’s top administrators in Malaysia have been charged with corruption in both US and Malaysian courts. They deny the claims.

For the first time, Goldman Sachs, which helped fund administrators increase about $ 6.5 billion, faces charges associated with the probe. Malaysian authorities are looking for billions of dollars in fines and up to 10 years imprisonment for each of the four people.

Two former Goldman Sachs bankers, Tim Leissner and Roger Ng Chong Hwa, are among those facing new charges in Malaysia. Also facing charges are two Malaysians: Jasmine Loo Ai Swan, the former Secretary General of the Fund and Jho Low, a financier who believes to have masterminded the extensive fraud.

Leissner, Chong Hwa and Jho Low were also accused of crimes last month by U.S. Department of Justice. Leissner has been charged guilty.

In a statement, Malaysian lawyer Tommy Thomas said that Goldman Sachs knew that the money taken would be “beaten and deceivedly deported” by corrupt Malaysian officials. The bank earned unusually high fees for its work on Malaysian funds, and employees and directors “received huge bonuses and improved career opportunities” as a result of their illegal actions, Thomas wrote.

The bank has denied any errors.

“We believe these charges are incorrect, will vigorously defend them and look forward to the opportunity to present our case,” Goldman Sachs said in a statement quoted by MarketWatch.

Goldman Sachs shares fell noticeably after news about the fees.

Malaysian Former Prime Minister Najib Razak created the state investment fund called 1Malaysia Development Berhad or 1MDB, 2009. The fund should promote global investment in Malaysia.

According to court records, billions of dollars were transferred from that fund and used to buy luxury assets – many in the United States – or transferred directly to accounts controlled by Najib, his family or his associates. The fund itself puts about $ 11 billion in debt.

Several countries, including the United States, are investigating the economic misconduct involved in the massive corruption scandal.

Leaked actions and journalists’ inquiries brought the scheme to public attention by 2015. But Najib revealed further investigation of the fund’s financial transactions and remained in power for three years.

He was finally suspended after losing elections in May – ended six decades of regular rule of his party.

Immediately after Najib lost power, the police struck one of their homes and seized cash, jewelry and handbags. A few months later Najib was arrested for charges of money laundering, bribery and criminal trust. His wife, Rosmah Mansor, also faces charges.

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