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Malaysia Files Charges Against Goldman Sachs in 1MDB Probe

Scandal over billions in state funding misappropriated.

Malaysia has filed criminal charges against Goldman Sachs and two of the investment giant’s former employees in connection with a corruption and money-laundering scandal at the country's state fund. Goldman has been under scrutiny for its role in helping raise $6.5 billion through three bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in six countries. Malaysia Attorney General Tommy Thomas said criminal charges were filed Monday against Goldman Sachs, former bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo, and financier Jho Low. “The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs,” Thomas said in a statement. A Goldman Sachs spokesman said “these charges are misdirected” and that the bank continues to cooperate with authorities in the investigations. The bank has denied any wrongdoing.

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