Malaysia charges 17 Goldman Sachs figures over 1MDB scandal

Malaysia charges 17 Goldman Sachs figures over 1MDB scandal”

Goldman Sachs (NYSE:GS) fell in midday trade on Friday after reports that 17 current and former bankers, including its CEO of its worldwide division, were criminally charged by Malaysia for their involvement in the 1Malaysia Development Berhad scandal.

Goldman Sachs has been under scrutiny for its role in helping to arrange $6.5 billion through bond offerings for Malaysian state fund, the 1Malaysia Development Berhad (1MDB).

Last year, Malaysia filed criminal charges against Goldman Sachs and two of the USA bank's former employees in connection with 1MDB.

In the filings issued on Friday, Malaysian Attorney General Tommy Thomas said the executives mentioned in the document should be held responsible for the U.S. bank's role in the scheme.

"We believe the charges announced today, along with those against three Goldman Sachs entities announced in December a year ago, are misdirected and will be vigorously defended", a Goldman spokesman said in a statement.

Richard Gnodde, who leads the bank's global business in London, as well as Canadian business executive Michael Evans, a former Goldman Sachs Asia chief who is now the president of Chinese e-commerce giant Alibaba, were among those charged on Friday.

He added that custodial sentence and criminal fines will be sought against the 17 Goldman Sachs directors accused under Section 367 (1), for their participation in the issuance as arrangers, structure agents, underwriters and sellers of the three 1MDB bonds.

Najib set up 1MDB when he took office in 2009, but it accumulated billions in debts and United States investigators allege at least $4.5bn was stolen from the fund and laundered by Najib's associates.

Prime Minister Mahathir Mohamad re-opened investigations into the 1MDB affair past year after defeating Najib at the polls, in large part due to public anger at the scandal, and pressure has been steadily mounting on the bank since.

Goldman Sachs did not immediately respond to a request for comment. His wife and stepson also have charged in the case.

In December, Malaysia filed charges against Goldman Sachs and its former bankers, Tim Leissner and Roger Ng.

Low has been described by Malaysian and US authorities as the central player in the 1MDB scandal.

It has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of transaction proceeds.

Malaysia has said it was seeking up to US$7.5 billion in reparations from Goldman over its dealings with 1MDB, set up in 2009 by then prime minister Najib Razak.

The new charges escalate the Malaysian investigation into the bank for its role in one of the largest global embezzlement scandals.

Jho Low, a former 1MDB employee who became the face of the scandal, also faces criminal charges.

Leissner has already pleaded guilty in America, while Ng was extradited to the U.S. from Malaysia in May and pleaded not guilty.

Like this



09 August 2019
Samsung thinks different about mocking Apple, deletes ads
This sensor captures much more depth data than the camera would otherwise, thus facilitating some very cool high-quality effects. The new Galaxy phones will go on sale on August 23 in the United States and South Korea, but there's no schedule for Japan yet.

09 August 2019
Miami Dolphins' Kenny Stills insists Stephen Ross criticism isn't political
On Thursday, Stills doubled down on that argument. "It's important to me that the work that we're doing isn't just lip service". Then Stills revealed that the death threats he received at the height of the kneeling controversy in 2017 have returned.

09 August 2019
Carmelo Anthony Rejected From Team USA Over Fears of Being a 'Distraction'
Anthony then was traded to the Hawks, where he accepted a contract buyout and was placed on waivers in July 2018. The Rockets traded Anthony to the Chicago Bulls on January 22, and the Bulls ultimately waived him on February 1.

09 August 2019
Google Offering Money-Back Price Guarantee on Google Flights
However, price guarantee is only available for flights booked through Google between August 13 and September 2. These recommendations cover everything from searching for hotels to restaurants and other things to do.

09 August 2019
Maryam Nawaz remanded in NAB custody till August 21
The country's National Accountability Bureau (NAB) said she was being held in connection with a money laundering investigation. She was taken into custody before meeting her father at Lahore's Kot Lakhpat jail, according to Geo News .

09 August 2019
Hubble Showcases New Portrait of Jupiter
Much smaller storms appear on Jupiter as white or brown ovals that can last as little as a few hours or stretch on for centuries. This global map of Jupiter released by NASA on August 8, 2019 was created using imagery from the Hubble Space Telescope .

09 August 2019
Walmart pulling violent video game signs from stores, not guns
Employees were also ordered to turn off hunting season videos in the sporting goods department where guns are sold. Two Walmart employees were killed in the MS shooting, and over 20 people died as a result of the El Paso attack.

09 August 2019
Detroit man deported to Iraq by Trump administration dies without insulin
His criminal history ultimately led to him being incarcerated and transferred to ICE custody in the early 2000s, Bajoka said . We think now they'll understand that this is life or death for people. 'We must change our policies to keep people safe'.

09 August 2019
National Basketball Association mental health memo sets new expectations for teams
Commissioner Adam Silver addressed concerns around players' mental health in March while at the Sloan Conference in Boston. Mental health and issues of anxiety and depression have been increasingly prevalent in society these days.

24 May 2019
Upcoming Online Slot Releases
Look out for Temple of Nugdes! Ancient Fortunes: Zeus Here is one last upcoming game, this time from the prolific Microgaming. This is mixed with a whole bunch of bonus features and extras, making for what will be a very popular game once it goes live.