Fed sacks former Goldman Sachs banker on 1MDB money-laundering

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Fed sacks former Goldman Sachs banker on 1MDB money-laundering

On Tuesday, the 12th of March 2019, the US Federal Reserve said that they had sanctioned two bankers of Goldman Sachs Group Inc. because of their participation in a money-laundering scandal involving the scandal-sickened 1MDB (1Malaysia Development Berhad), the state-owned investment fund of Malaysia.

According to the Fed statement revealed on Tuesday (March 12th), Roger Ng and Tim Leissner had been suspended from taking part in the banking sector due to their malicious involvement in a ploy that helped divert billions of US dollars from a Malaysian state-owned wealth fund.

According to a settlement order issued by Fed, a former partner of Goldman Sachs in Asia, Tim Leissner, neither admitted nor denied the accusations, however, agreed to pay a fine of $1.42 million.

Last year, US prosecutors ruled Leissner guilty of conspiring to launder money and violating the Foreign Corrupt. Practice Act. While being asked for comments, a lawyer or Leissner declined to respond immediately. However, according to the Fed, Ng may request a hearing on his ban from the banking industry, Citing that the charges were expected, a spokesman for Goldman Sachs, Michael Duvally said in an emailed statement, “Given the Department of Justice’s charges, this development is hardly surprising”.