See More on Facebook

Business, Economics

Malaysia files criminal charges against Goldman Sachs

Two ex-bankers have also been charged in connection to the 1mdb scandal.


Written by

Updated: December 17, 2018

Malaysia said on Monday it has filed criminal charges at home against Goldman Sachs and two of the U.S. bank’s former employees in connection with a corruption and money laundering probe at state fund 1MDB.

Goldman Sachs has been under scrutiny for its role in helping raise $6.5 billion through three bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in at least six countries.

Malaysia’s Attorney General Tommy Thomas said criminal charges under the country’s securities laws were filed on Monday against Goldman Sachs, its former bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo and financier Jho Low in connection with the bond offerings.

“The charges arise from the commission and abatement of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs,” Thomas said in a statement.

In an emailed statement, a Goldman Sachs spokesman said “these charges are misdirected” and that the bank continues to cooperate with all authorities in their investigations.

The bank has consistently denied wrongdoing.

Thomas said prosecutors will seek fines against the accused “well in excess” of the allegedly misappropriated $2.7 billion bond proceeds plus $600 million in fees received by Goldman Sachs.

Malaysia will also seek jail terms of up to 10 years for each of the individuals accused, Thomas said.

“Having held themselves out as the pre-eminent global adviser/arranger for bonds, the highest standards are expected of Goldman Sachs. They have fallen short of any standard,” Thomas said.

Low has said he is innocent. A spokesman did not immediately respond to a request for comment.

Loo, against whom Malaysia brought other 1MDB related charges this month, has not commented on the 1MDB case and her whereabouts are unknown.

Lawyers for Leissner and Ng could not be reached immediately.

The U.S. Department of Justice (DOJ) has said about $4.5 billion was misappropriated from 1MDB, including some money that Goldman Sachs helped raise, by high-level officials of the fund and their associates from 2009 through 2014.



Enjoyed this story? Share it.


The Star
About the Author: The Star is an English-language newspaper based in Petaling Jaya, Malaysia.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Business, Economics

South Korea urges region to embrace multilateralism, free trade

Wide gap remains after bilateral meeting of Kang and Kono. The foreign ministers of South Korea and Japan remained at odds in their bilateral meeting held in China on Wednesday, reiterating their respective stances on Tokyo’s wartime forced labor and trade curbs. Foreign Minister Kang Kyung-wha and her Japanese counterpart, Taro Kono, met for 35 minutes on the sidelines of a trilateral meeting with their Chinese counterpart, Wang Yi, in Gubei Water Town near the Great Wall in northern Beijing. “Kang strongly urged Kono to retract the country’s decision to remove South Korea from its “whitelist” of countries with fast-track trade status u


By The Korea Herald
August 22, 2019

Business, Economics

Ho Chi Minh attracts nearly 4 billion USD in investment in 2019

Manufacturing and textiles among key sectors. HCM City attracted about US$3.63 billion of foreign direct investment (FDI) capital in the first seven months of this year, marking a year-on-year increase of 15.2 per cent, according to the municipal People’s Committee. Nearly $688.8 million came from 678 newly registered projects, up 26.9 per cent in value and 18.3 per cent in the number of projects from the same period last year. In the period, 2,668 foreign investors bought shares and acquired stakes of domestic enterprises with total registered capital of $2.6 billion, 28.3 per cent and 16.7 per cent higher respectively than in the same period last year. Meanwhile, HCM City granted business licences to 24,529 new domestic enterprises worth more than VND396 trillion ($17 billion), up 0.9 per cent and 25.7 per cent, respectively. Up to 71,874 existing enterprises were allowed to add a c


By Viet Nam News
August 20, 2019

Business, Economics

Goldman Sachs appoints lawyer to observe 1MDB trial

The bank has been implicated by recent findings. Goldman Sachs Group Inc has appointed a lawyer to observe the 1Malaysia Development Berhad (1MDB) trial of former prime minister Datuk Seri Najib Razak. The US bank is represented by local lawyer Chetan Jethwani, who will hold a watching brief in the hearing set to begin Aug 26, according to a Kuala Lumpur court. A watching brief lets lawyers, whose clients aren’t directly involved in the case, obtain witness statements and documents in the trial but doesn’t allow them to question witnesses or submit evidence. Malaysia escalated efforts to prosecute Goldman Sachs by announcing criminal charges against 17 of its current and former directors, after charging three of the bank’s units last year. Najib’s second trial revolves around 25 money laundering and corruption charges linked to joint ventures, asset sales and debt issuance by 1MDB.


By The Star
August 20, 2019

Business, Economics

Holding Huawei hostage won’t pay off: China Daily editorial

Editor’s note: Washington has postponed its Huawei decision until after holidays. Early this week, Washington will review its decision on Huawei as scheduled. It put the company on its export-control list on May 15, delaying the restrictions for three months from May 21. Although it might be the US suppliers of Huawei that care more about the outcome than the Chinese telecommunications giant itself, the US should not try to hold Huawei hostage to try and force China into agreeing to an unfair trade deal. Huawei is confident that no power can hold back the pace with which the world will step over the threshold into the 5G era and equally sure of its leadership advantages in that technology, which come from its innovation and foresight. It spends about $20 billion a year on research and development, and it has reportedly already begun research on the next generation 6G telecommunications technology.


By China Daily
August 20, 2019

Business, Economics

Taiwan raises 2019 GDP growth forecast

GDP growth raised on investment data. Taiwan has raised its forecast for gross domestic product (GDP) growth for 2019, reflecting increased investment in Taiwan by local suppliers looking to steer clear of the trade dispute between the United States and China. The Directorate General of Budget, Accounting and Statistics (DGBAS) said in a statement Friday that it has revised its estimate for GDP growth in 2019 to 2.46 percent, up 0.27 percentage points from its previous forecast in May. A big factor in the revision was increased investment at home by Taiwan-based companies operating in China that wanted to increase their production capacity in Taiwan to avoid punitive tariffs imposed by the United States on goods made in China, the DGBAS said. The trade dispute has also prompted a shakeup in the global electronics supply chain, leading to more production capacity in Taiwan, the DGBAS said.


By ANN Members
August 19, 2019

Business, Economics

Signs of global recession haunt S. Korean economy

Trade wars and economic disputes have harmed the economy. A shadow of global recession looms over key economies as major markets have been dealing with some of their worst days in recent weeks. This is sparking concerns that chances of recession may also be growing on home turf, in South Korea. Last week, the yields on US 10-year Treasurys fell below two-year yields for the first time since 2007 – a phenomenon known as an inverted yield curve. Investors and experts alike are regarding such trend with wariness — every recession in the last 60 years has been preceded by the yield curve inversions. “Every time the US 10-year Treasuries fell below two-year yields, an economic recession came within a time frame of 18 months, which is why we have to be concerned,” Kong Dong-rak, an analyst at Daishin Securities said. “Even if it does not result in a recession, it is definitely a strong si


By The Korea Herald
August 19, 2019