World News

Malaysia files criminal charges against Goldman Sachs

Malaysia files criminal charges against Goldman Sachs

The scandal was a major contributor to the shock election defeat of Malaysia's previous government under former Prime Minister Najib Razak in May.

The United States Department of Justice had reported that around Dollars 4.5 billion was embezzled from the 1MDB funds by high-ranking Malaysian officials.

The issue exploded in July 2015 when The Wall Street Journal published documents showing Najib received at least US$681 million in payments to his personal bank accounts.

The bank has consistently denied wrongdoing.

"They have fallen short of any standard", Mr Thomas said. "In effect, they have to be held accountable".

Putrajaya filed criminal charges against Goldman and Low here yesterday, ahead of a planned lawsuit in the United States seeking the return of US$600 million (RM2.5 billion) that the bank earned from the bond issues as well as other damages. The bank, he said, received $600 million in fees for organizing the bond deals.

"We believe these charges are misdirected, will vigorously defend them and look forward to the opportunity to present our case", Goldman Sachs said in a statement quoted by MarketWatch.

Leissner's guilty plea suggests he's helping USA authorities with their investigation of the bank.

"Their fraud goes to the heart of our capital markets, and if no criminal proceedings are instituted against the accused, their undermining of our financial system and market integrity will go unpunished", said Attorney General (AG) Tommy Thomas in a statement.

More news: Fresh Prince star sues Epic over Fortnite’s use of the Carlton dance

Malaysia has filed criminal charges against Goldman Sachs and two former employees in connection with a corruption and money laundering probe at the country's investment fund, 1MDB. He told a USA federal court that Goldman's "culture" encouraged executives to work around the legal team to score business.

"The Offering Circulars and Private Placement Memorandum for the Bonds filed with the Labuan Financial Services Authority, the financial regulator of Labuan, Malaysia's off-shore banking jurisdiction (which are the subject matter of the charges), contained statements which were false, misleading or from which there were material omissions by representing to investors that the proceeds of the Bond issuances would be used for legitimate purposes, when in fact the proceeds were corruptly and fraudulently misappropriated".

The charges brought Monday were under Malaysian security laws, for which the maximum jail term is 10 years.

Malaysian authorities earlier this year recovered a $250 million yacht purchased by Low in 2014.

And two Abu Dhabi funds - International Petroleum Investment Co. and Aabar Investments - have filed a civil suit against Goldman Sachs in NY, seeking damages for alleged fraud in connection with embezzlement at 1MDB.

He has been hit with several rounds of charges but maintains his innocence.

Malaysia's filing of criminal charges against Leissner and Ng came after the US Department of Justice indicted the duo for conspiring to launder money and violating the Foreign Corrupt Practices Act (FCPA) in relation to 1MDB by paying bribes to various Malaysian and Abu Dhabi officials. Najib has pleaded not guilty to the offenses.

Goldman also claims that 1MDB and two of its bankers, including Southeast Asia head Tim Leissner, had lied to the company about the deals.


  • YouTuber punishes package thieves with glitter bomb, fart sprayer

    YouTuber punishes package thieves with glitter bomb, fart sprayer

    Former NASA engineer Mark Rober , however, came up with a very novel idea involving an Apple HomePod retail box. This gives Rober the chance to recover it, but the video is uploaded to the cloud on the off-chance he can't.
    Penny Marshall, star of 'Laverne & Shirley,' dead at 75

    Penny Marshall, star of 'Laverne & Shirley,' dead at 75

    Marshall is most well-known for her role as Laverne in the sitcom 'Laverne & Shirley, ' which ran for eight seasons. Garry was the creator of Happy Days , the show that eventually spawned the spin-off Laverne & Shirley.
    Varun Chakravarthy & Jaydev Unadkat Get 8.4 Crore

    Varun Chakravarthy & Jaydev Unadkat Get 8.4 Crore

    Meanwhile, Jonny Bairstow is is sold to Sunrisers Hyderabad for Rs 2.20 crore. However, veteran allrounder Yuvraj Singh remained unsold.
  • Florida man tries to pay for McDonald's with marijuana

    Florida man tries to pay for McDonald's with marijuana

    Anthony Andrew Gallagher is accused of trying to pay for McDonalds with a bag of weed. Police made contact with Gallagher and found 11 grams of marijuana on him.
    Vikings Selected to 2019 Pro Bowl

    Vikings Selected to 2019 Pro Bowl

    The game will be played in Camping World Stadium at 2 p.m. on January 27 and televised by both ABC and ESPN. His current streak of 11 game this season with a passer rating of 100 or better is also a franchise record.
    North Korea warns USA  over stalled nuclear negotiations

    North Korea warns USA over stalled nuclear negotiations

    The North's official Korean Central News Agency instead ran stories about memorials to Kim Jong Il in Libya, Russia and Serbia. It added such moves "will block the path to denuclearization on the Korean Peninsula forever, . a result desired by no one".
  • Jose Mourinho’s 11 signings - ranked from worst to best

    Jose Mourinho’s 11 signings - ranked from worst to best

    The controversy was an appropriately rancorous end to the World Cup winner's stormy relationship with Mourinho. But Neville is shocked to see Mourinho depart without lifting the Premier League title at Old Trafford.
    Here’s Why Ranveer Singh Recommends Marriage to Youngsters

    Here’s Why Ranveer Singh Recommends Marriage to Youngsters

    Dil De Chuke Sanam, Devdas and Guzaarish felt usurped by Deepika Padukone in Bhansali's Ram Leela, Bajirao Mastani and Padmaavat . Talking about first date, she said, "We started going to restaurants.The most special moment for us was at slb's house".
    Miley Cyrus Hints at Liam Hemsworth's Bedroom Prowess in NSFW Instagram Comment

    Miley Cyrus Hints at Liam Hemsworth's Bedroom Prowess in NSFW Instagram Comment

    Cyrus, Ronson and Lennon released a cover of "Happy Xmas (War is Over)" on Thursday night in preparation for the big show. Lennon, 43, is the only child Lennon and Ono had together, and is a celebrated musician in his own right.
  • MLS to shorten season, move to single-elimination for 2019 playoffs

    MLS to shorten season, move to single-elimination for 2019 playoffs

    Now that break has been eliminated, while the October window can be used by teams as a recovery period ahead of the playoffs. The 2019 MLS playoffs will begin October 19, with the entirety of the playoffs happening during FIFA's global break.
    Justice Department announces ban on bump stocks

    Justice Department announces ban on bump stocks

    Paddock rained a hail of bullets from his 32nd-floor Las Vegas hotel room, killing 58 people at a concert. Following the Las Vegas shooting the devices became a focal point in the national gun control debate.
    Nuggets Beat Raptors, Extend Win Streak to 3

    Nuggets Beat Raptors, Extend Win Streak to 3

    Lowry would prefer Leonard to stay with Toronto Raptors as the pair have led their franchise to the top of the Eastern Conference. Denver's latest run was sparked by Jokic, who had 22 points, seven rebounds, and three assists after three quarters of play.