1MDB scandal: Goldman Sachs boss David Solomon apologises for role played by former banker Tim Leissner in ‘defrauding people of Malaysia’
- US prosecutors last year charged two former Goldman bankers for the theft of billions of dollars from 1MDB
- Leissner, a former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate the Foreign Corrupt Practices Act
Goldman Sachs CEO David Solomon on Wednesday apologised to the Malaysian people for former banker Tim Leissner’s role in the sovereign wealth fund 1MDB scandal, but said the bank had conducted due diligence before every transaction.
Goldman is being investigated by Malaysian authorities and the US Department of Justice for its role as underwriter and arranger of three bond sales that raised US$6.5 billion for 1MDB – as 1Malaysia Development Berhad is commonly known.
US prosecutors last year charged two former Goldman bankers for the theft of billions of dollars from 1MDB. Leissner, a former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate the Foreign Corrupt Practices Act.
“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” Solomon said on conference call discussing the bank’s fourth-quarter results.
Solomon said that Leissner denied the involvement of any of Goldman’s intermediaries in transactions with 1MDB.
A lawyer representing Leissner did not immediately respond to a request for comment.