US judge dismisses criminal case against Goldman Sachs relating to Malaysia’s 1MDB
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Goldman Sachs has said 1MDB officials and former Malaysian government officials lied to it about how bond sale proceeds would be used.
PHOTO: REUTERS
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NEW YORK – A US judge on May 6 formally ended the US government’s criminal case against Goldman Sachs related to the Wall Street bank’s work for Malaysia’s state fund 1MDB after it met its obligations and paid US$2.9 billion (S$3.9 billion) in penalties.
Chief Judge Margo Brodie of the federal court in Brooklyn dismissed a bribery conspiracy charge against Goldman, after the bank successfully completed a three-year deferred prosecution agreement that expired in October.
Goldman did not oppose the dropping of the criminal charge.
The bank helped sell US$6.5 billion of bonds for 1Malaysia Development Berhad, which former Malaysian prime minister Najib Razak set up
US and Malaysian authorities have said US$4.5 billion was siphoned away, with some diverted to offshore bank accounts and shell companies linked to Low, who is now a fugitive.
Goldman said 1MDB officials and former Malaysian government officials lied to it about how bond sale proceeds would be used.
The bank collected about US$600 million in fees, and its Malaysia unit pleaded guilty to a corruption charge.
Two former Goldman bankers were criminally charged in the matter.
Tim Leissner, who led Goldman’s South-east Asia business, pleaded guilty and has yet to be sentenced.
Roger Ng, a former head of investment banking in Malaysia, was convicted in Brooklyn and sentenced to 10 years in prison, but transported to Malaysia last October to assist in investigations there. REUTERS
