Malaysia files criminal lawsuit against 17 Goldman Sachs executives

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Malaysia files criminal lawsuit against 17 Goldman Sachs executives

On Friday, the 8th of August 2019, Malaysia’s financial watchdog had filed criminal charges against 17 former and current executives of Goldman Sachs Group Inc., linked with a multi-billion-dollar corruption scandal of Malaysia’s state fund, I Malaysia Development Bhd, shortly dubbed as 1MDB.

In point of fact, one of the largest multinational US lenders, New York-based Goldman Sachs, had been a subject of corruption alongside money laundering tied with 1MDB fund in at least six countries. In actuality, the NY-based American lender had been grappling with a stack of scrutiny for more than six months over its role on raising a lump-sum of $6.5 billion through bond offerings for the IMDB fund.

Nonetheless, accusing Goldman Sachs’ executives as potential playmakers to illegally channel as much as $2.7 billion, Malaysian prosecutors had been quoted saying on Friday (August 9th) that the bond offerings’ statement filed with Malaysian regulators contained falsified documents, which in effect misled hundreds of thousands.

Adding that certain senior executives of Goldman Sachs might have been responsible for criminal offences executed on behalf of the 1MDB fund, an Attorney General, Tommy Thomas said, “Custodial sentences and criminal fines will be sought against the accused ...

given the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds,” while pledging to a robust response over misdirected accusations by Malaysian regulators, a Goldman Sachs spokesman said in Hong Kong on Friday (August 9th), “We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended.

Under the Malaysian legal process, the firm and the individual entity directors were not afforded an opportunity to be heard prior to the filing of these charges, which do not affect our ability to conduct our current business globally. ”