Two former Goldman Sachs bankers were accused of being involved in a multi-billion case of embezzlement that took place in Malaysia. The formers bankers are being accused of underwriting bond debt notes for more than 6 billion dollars, in an operation that generated more than $600 million dollars in fee revenue for Goldman Sachs. The case has deep ramifications and the investigation is still ongoing.
Former Goldman Sachs Bankers Involved In Embezzlement
Goldman Sachs, one of the most reputed and known financial institutions of the whole banking world, has been tarnished yet again with a corruption case that involves former Goldman Sachs bankers taking place in embezzlement and bribes that got the bank more than $600 millions in fees.
Tim Leissner, one of the former bankers that had been accused of money laundering has pleaded guilty of the charges. He was one of the artifices of the embezzlement that took more than 4.5 billion dollars from the 1MDB Malaysian development fund. This case was still in the open from 2016, when the Malaysian prime minister lost his reelection for being related to this corruption case.
Roger Ng, the other Malaysian banker that has been indicted by the Department of Justice, was arrested in Malaysia recently and will have to face trial by the charges of money laundering, making bribes and also for violating financial controls.
1MDB Malaysian Development Fund Scandal
As we mentioned before, this scandal has deep ramifications in the economic and political world, because the former Malaysian prime was involved too; he had withdrawn more than $700 million in bank accounts of his own. The funds embezzled were used to buy luxury items, jewels, and gifts to actors like Leonardo DiCaprio when they originally were collected to help Malaysians with development issues.
The producers of the movie “The Wolf Of Wall Street” have also a relationship with this case. The company in charge of that, Red Granite Pictures, was run at the time by a stepson of the former prime minister. The money supposedly was to finance much of the development of this and other movies.
This marks the end of the honeymoon travel for David Solomon, that had no difficult PR cases till now. Despite this happening while his predecessor was running the company, it will be his duty to wash the face of the institution in front of the customers. The investigation suggests that they were other accomplices inside Goldman Sachs, so inquiries are still being made; Goldman Sachs has declared that they are collaborating with the authorities.