Malaysia files criminal charges against Goldman Sachs in 1MDB probe
- Goldman Sachs has been under scrutiny for its role in helping raise funds through bond offerings for 1MDB, which is the subject of investigations in at least six countries
Malaysia filed criminal charges on Monday against Goldman Sachs and two of its former employees over the alleged theft of billions of dollars, heaping fresh pressure on the Wall Street titan over the 1MDB scandal.
Goldman subsidiaries and former bankers Tim Leissner and Ng Chong Hwa are accused of misappropriating US$2.7 billion, bribing officials and giving false statements when helping to arrange bonds for state fund 1MDB.
Allegations that huge sums were looted from 1MDB in an audacious fraud that involved former Malaysian leader Najib Razak and his cronies, and used to buy everything from yachts to artwork, contributed to the last government’s shock defeat at historic elections in May.
Both former Goldman employees had already been charged over the scandal in the US last month, with Leissner pleading guilty while Ng was arrested in Malaysia. Low Taek Jho, a Malaysian financier accused of masterminding the fraud, was also hit with new charges.
The news represented a fresh blow to Goldman, where corporate culture has come under scrutiny after a steady stream of accusations surrounding its involvement in the controversy.