1MDB: The United States accuses two former bankers and financier of Goldman of committing widespread fraud in Malaysia

NEW YORK: Federal prosecutors on Thursday filed criminal charges against a Malaysian financier and two former Goldman Sachs investment banks who helped raise funds for a Malaysian government investment fund in which about $ 4 billion has disappeared.

The lawsuits against former Goldman bankers Tim Leissner and Roger Ng were announced by federal prosecutors in Brooklyn. Jho Low, the Malaysian financier, whom prosecutors described as being the brain of a ploy to divert money from the Malaysian sovereign wealth fund, has also been implicated.

Leissner pleaded guilty to conspiring to launder money and violating foreign anti-corruption laws. Ng faces similar charges. Ng was arrested Thursday in Malaysia, authorities said. Low stayed on the run.

The filing of criminal charges in this case was a rare gesture against the leaders of major US banks during the decade that followed the financial crisis. The charges could put pressure on Goldman – the main underwriter of the bonds for the fund at the center of the case, 1Malaysia Development Berhad, or 1MDB – in order to reach a potential settlement with the federal authorities.

The fees could also have wider repercussions within the bank. According to the indictment documents, Leissner organized bribes and kickbacks to officials in Malaysia and Abu Dhabi with the help or knowledge of several anonymous conspirators, including One was identified as "an Italian national employed as a participating general manager". at Goldman.

The authorities claim that the bribes and bribes were paid to secure the 1MDB bond underwriting activities for the bank. The unidentified conspirator agreed with Leissner to not talk to anyone about Goldman's compliance services regarding bribes, according to court documents.

The unidentified co-conspirator is Andrea Vella, according to two people close to the case who spoke under the guise of anonymity because they were not allowed to speak in public.

Just two weeks ago, Vella was co-head of Goldman's investment bank in Asia. At this point, according to a Reuters report, Vella and his co-director have been replaced by another veteran banker, Goldman.

The alleged diversion of billions of dollars from the 1MDB fund became the focus of an international scandal that spreads from Malaysia in the United States to Hong Kong.

Until recently, the investigation had focused on allegations that Low had embezzled billions of dollars from the 1MDB fund. Federal prosecutors in Los Angeles have filed several civil lawsuits to recover badets purchased with some of this money.

In the United States and elsewhere, prosecutors believe that a group of people close to former Malaysian Prime Minister, Najib Razak, has seized the fund to buy paintings, yachts , real estate and even stakes in movies such as Street. "

Some of these allegations were described in civil confiscation complaints filed by federal prosecutors in Los Angeles last year. Prosecutors from the Money Laundering and Asset Recovery Division of the Justice Department also played an active role in the investigation of foreign bribery.

The investigation shook Malaysian politics earlier this year, pushing voters to overthrow Razak. The new Prime Minister, Mahathir Mohamad, quickly opened an investigation into the alleged theft of billions of dollars in the investment fund created under Najib. The Malaysian government is seeking a return of Goldman, according to the country's new finance minister.

Goldman provided a range of services to the fund, including badisting him to sell billions of dollars in bonds to investors, generating commissions of about $ 600 million for his work. The authorities examined the possible role the company had played in 1MDB fraud, whether it was aware of the alleged fraud and whether it should have done more to uncover the embezzlement.

Goldman has repeatedly downplayed his role in the scandal, claiming he did not know how the fund's money was being used. The company declared to cooperate with the investigation.

Goldman did not immediately comment on Thursday. A lawyer from Leissner could be contacted for comment. A representative of Low did not have an immediate comment.

Leissner, who worked closely with the Malaysian fund, had been in talks with the federal prosecutor for some time. Ng reported to Leissner at Goldman. We did not know who Ng was.

Both Leissner and Ng left the bank more than a year ago.