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NEW YORK: Goldman Sachs Group Inc. has been sued by an Abu Dhabi investment fund that claims to have suffered losses from the bank's "central role" in the corruption and corruption scandal for 1MDB in Malaysia.
International Petroleum Investment Co. and Aabar Investments PJS claim unspecified damages in a lawsuit filed Wednesday in a New York court.
The funds were hurt when Goldman Sachs paid bribes to former IPIC CEO Khadem Al-Qubaisi and former Aabar Investments CEO Ahmed Badawy Al-Husseiny.
In exchange, "Al-Qubaisi and Al-Husseiny have agreed to manipulate and mislead IPIC and Aabar, as well as misuse companies' names, networks, and infrastructure to advance crime schemes and to take advantage of them. a personal benefit, "according to the complaint.
Al-Qubaisi received $ 473 million, which was siphoned off by 1MDB in 2012, according to the US Department of Justice.
The United States alleges that a small group of Malaysians misappropriated 1MDB money into personal accounts apparently disguised as legitimate businesses, and donated some of these funds to the authorities. Goldman Sachs realized $ 593 million in three bond sales, which earned $ 6.5 billion for 1MBD in 2012 and 2013, which is less than banks do with government.
Tim Leissner, former president of Goldman Sachs for Southeast Asia, admitted in a plea that he had bribed officials to obtain bond deals and said that a culture of secrecy to the investment bank had led him to conceal wrongdoing to compliance staff.
1MDB, created by former Prime Minister Najib Razak to attract foreign investment, has accumulated billions of dollars in debt after its inception in 2009 and is central to numerous investigations into alleged corruption and money laundering. ;money.
Goldman Sachs spokesman Michael DuVally said in an email that the bank had "no immediate comment" on the Abu Dhabi lawsuit.
The bank's shares have plummeted since US attorneys involved a trio of Goldman Sachs bankers in a multi-billion dollar Malaysian fraud earlier this month. Goldman's shares fell the most in seven years last week, when Malaysia's finance minister said he would seek full reimbursement of all the fees he paid for 1MDB transactions.
Analysts and investors are trying to estimate the financial impact of the scandal for Goldman Sachs after the publication in a statement this month of a large fine. Morgan Stanley analyst Betsy Graseck said on Wednesday it was unclear how long the investigation would take, how many fines and penalties could be imposed or what costs Goldman Sachs would incur to satisfy regulatory requirements.
Graseck also said that there could be further lawsuits, investigations and upcoming internal reviews. She does not see the bank's actions coming together until these concerns are resolved.
The lawsuit had already been reported by the Wall Street Journal.
The case concerns International Petroleum Investment Co. V. The Goldman Sachs Group Inc., Supreme Court of New York State, New York County (Manhattan). – Bloomberg
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