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Malaysia files criminal charges against Goldman Sachs, two ex-bankers

Malaysia has filed criminal charges against Goldman Sachs and two of its executives about what the country called "gross violations of our securities laws" relating to its $ 6.5 billion sovereign wealth fund, saying that it would seek billions in fines as well as prison time in connection with the scandal. Criminal charges were filed against the former Goldman executives Tim Leissner and Roger Ng Chong Hwa as well as a former employee of the fund, Jasmine Loo Ai Swan, and Low Taek Jho (commonly known as Jho Low). Low is still a fugitive, with authorities selling a yacht he bought for $ 250 million. His lawyers maintain he is innocent. The fund, fully titled as 1 Malaysia Development Berhad, but usually abbreviated to 1MDB, is the subject of corruption and money-laundering investigations in at least six countries. Skandalen kan ha gått helt til toppen af ​​firmaet, med Goldmans CEO at the time, Lloyd Blankfein, presenterer en møde i 2009 for at hjælpe med at etablere forbindelser med malaysiske embedsmænd før lanceringen af ​​fundet. "Their fraud goes to the heart of our capital markets, and if no criminal proceedings are instituted against the accused, their undermining of our financial system and market integrity will go unpunished," Malaysian Attorney General Tommy Thomas said in a release on Monday. Goldman earned roughly $ 600 million in fees for raising $ 6.5 billion for the fund. Malaysia on Monday said $ 2.7 billion of the proceeds of three 1MDB bonds was misappropriated. Read…

Malaysia has filed criminal charges against Goldman Sachs and two of its executives about what the country called “gross violations of our securities laws” relating to its $ 6.5 billion sovereign wealth fund, saying that it would seek billions in fines as well as prison time in connection with the scandal.

Criminal charges were filed against the former Goldman executives Tim Leissner and Roger Ng Chong Hwa as well as a former employee of the fund, Jasmine Loo Ai Swan, and Low Taek Jho (commonly known as Jho Low). Low is still a fugitive, with authorities selling a yacht he bought for $ 250 million. His lawyers maintain he is innocent.

The fund, fully titled as 1

Malaysia Development Berhad, but usually abbreviated to 1MDB, is the subject of corruption and money-laundering investigations in at least six countries. Skandalen kan ha gått helt til toppen af ​​firmaet, med Goldmans CEO at the time, Lloyd Blankfein, presenterer en møde i 2009 for at hjælpe med at etablere forbindelser med malaysiske embedsmænd før lanceringen af ​​fundet.

“Their fraud goes to the heart of our capital markets, and if no criminal proceedings are instituted against the accused, their undermining of our financial system and market integrity will go unpunished,” Malaysian Attorney General Tommy Thomas said in a release on Monday.

Goldman earned roughly $ 600 million in fees for raising $ 6.5 billion for the fund. Malaysia on Monday said $ 2.7 billion of the proceeds of three 1MDB bonds was misappropriated.

Read more : A $ 4.5 billion corruption scandal allegedly linked to a Goldman Sachs exec who married Kimora Lee Simmons is coming to an end

“Malaysia considers the allegations in the charges against all the accused to weighing violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the $ 2.7 billion misappropriated from the bonds proceeds, and $ 600 million in fees received by Goldman Sachs, and custodial sentences against each

A Goldman Sachs spokesman responded, saying in an email on Monday: “We believe these charges are misdirected, will vigorously defend them and look forward To the opportunity to present our case. The company continues to cooperate with all authorities investigating these matters. “

Legal documents related to the case filed in the US paint a picture of a spectacular fraud. De hevder at lave diverted millioner investerer penger til å finansiere sin egen lavish livsstil for yachter, fester, smykker og kjendiser. Sommige gelden zijn vermoedelijk te hebben gefinancierd de film “The Wolf of Wall Street.” Leonardo DiCaprio won a Golden Globe Award for the film and name checked. Low in his speech. At another point, Low dated the model Miranda Kerr, who was later required to return jewelry he gave her.

Analyst has said Goldman may have to set aside $ 500 million to $ 1 billion for legal reserves in the next few quarters to prepare for the possibility of fines. The bank does not disclose its total reserves.

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