US judge sentences ex-Goldman Sachs banker to two years over 1MDB scandal
[NEW YORK] A US judge on Thursday sentenced a former Goldman Sachs banker central to the 1MDB scandal to two years in prison after prosecutors argued for leniency due to his cooperation.
Timothy Leissner, a key architect of the massive bribery and kickback scheme involving a Malaysian sovereign wealth fund, will begin serving a 24-month sentence in September, according to a spokesman for the US Department of Justice.
Leissner, who previously pleaded guilty to US bribery and money laundering counts, faced a maximum sentence of 25 years.
The 1MDB conspiracy involved billions of dollars that were raised to support energy and infrastructure projects but were instead pilfered or used to purchase yachts, jewelry and other luxury items.
The case resulted in 'the only criminal case filed against Goldman Sachs in its 156-year history,' the firm said in a filing to the court that endorsed a tough sentence.
But prosecutors argued for leniency, citing Leissner's 'extraordinary' assistance to the probe after federal agents ambushed the defendant in June 2018 after he deplaned an international flight in Washington.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
The government's brief cited 'marathon meetings' with Leissner in which he turned over electronic devices and 'displayed remarkable recall and spoke with precision about what he knew about the scheme,' which included repeatedly lying to colleagues at Goldman about his actions, the Justice Department said.
Leissner testified against Ng Chong Hwa, or 'Roger Ng,' another former Goldman banker, at a New York trial in February 2022. Ng has been sentenced to 10 years after being found guilty, but has yet to begin his sentence, the Justice Department said.
Leissner also provided details that led to US charges against Low Taek Jho, a Malaysian financier known as 'Jho Low' who remains at large.
In a letter to the court, Leissner, 55, called his crime 'terrible' and expressed regret at time lost with children and ageing parents.
'I have had to publicly face the fact that I helped steal billions of dollars not just from individuals, but from an entire nation,' Leissner said.
But Goldman Sachs dismissed Leissner's cooperation.
'Whatever personal and professional consequences Mr. Leissner may himself have experienced in recent years, those consequences are a natural and direct result of his brazen and audacious criminal conduct, not his cooperation,' Goldman said. AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
International Business Times
5 hours ago
- International Business Times
Singapore Plans to Acquire 2 Malaysian-Owned Land Plots for Woodlands Checkpoint Expansion
The Singapore Land Authority (SLA) announced the acquisition of two land parcels on Wednesday, Jun 4, for the refurbishment and extension of Woodlands Checkpoint. Currently, the Malaysian government owns the land parcels. The Immigration and Checkpoints Authority (ICA) and SLA issued a joint press release and said that they will work closely with the Malaysian government through the acquisition process. The Singapore authorities said, "We will continue our strong partnership with the Malaysian government to strengthen connectivity and people-to-people links." The two land parcels have a total area of 0.79ha, slightly larger than a football field. They are vegetated and unused and are located near the middle of the planned redevelopment area. According to the joint press statement, the property acquisition is part of ICA's plan to rehabilitate and extend Woodlands Checkpoint in phases over the next 10 to 15 years in order to "provide a long-term solution to the chronic congestion at this land crossing". In 2024, the daily volume of travelers at Woodlands Checkpoint increased by 22%, reaching 327,000 from 269,000 in 2023. During the year-end school vacations in 2024, a record 376,000 people traveled through the checkpoint on December 20. By 2050, the average daily number of travelers at Woodlands Checkpoint is expected to exceed 400,000. In 2024, ICA reported that Singapore had written to Malaysia in May 2022 and November 2023 to discuss purchasing the land. Under Phase 1 of the development process, ICA will extend Woodlands Checkpoint at the Old Woodlands Town Centre. Construction is expected to begin in the third quarter of 2025. This addition will incorporate new automated clearance facilities for freight and arriving cars. The Bukit Timah highway (BKE) will also be extended, providing a direct path for vehicles departing Woodlands Checkpoint to the highway and alleviating traffic congestion on local roads during peak hours. The subsequent phases will include the construction of new clearance facilities and the retrofitting of the existing checkpoint. The complete rebuilding of Woodlands Checkpoint seeks to improve clearance efficiency across all forms of transportation, cut average peak travel time to 15 minutes, and increase automation by introducing devices for automated in-car immigration clearance. ICA will also be able to conduct security inspections outside from the main checkpoint structure and provide holding facilities for vehicles within the checkpoint, reducing congestion on the BKE and neighboring roads. "ICA will continue to leverage technology and develop innovative solutions to facilitate cross-border travel and trade, while keeping our borders secure," the statement added.
Straits Times
6 hours ago
- Straits Times
Anwar Ibrahim denied immunity as civil sexual assault suit set for June 16.
Prime Minister Anwar Ibrahim says the lawsuit may be "politically motivated, or institutionally disruptive.' ST PHOTO: JASON QUAH KUALA LUMPUR - Malaysian Prime Minister Anwar on June 4 failed in his bid for immunity from liability while in office, paving the way for a civil lawsuit involving allegations of sexual assault against him to proceed on June 16. The High Court rejected Datuk Seri Anwar's application to refer eight constitutional questions to the Federal Court. High Court judge Roz Mawar Rozain ruled that the questions did not warrant immediate constitutional referral and that the lawsuit could proceed through the regular civil process. 'From a judicial perspective, the proposed questions do not appear to meet the threshold of genuine constitutional controversy,' she said. There is 'no express constitutional or statutory immunity accorded to a sitting Prime Minister for private acts pre-office', she added. In response to the decision, Mr Anwar said in a statement: 'This matter has never been about seeking personal immunity or escaping legal scrutiny. It concerns the integrity of our constitutional system and the need to ensure that high public office is protected from litigation that may be strategically timed, politically motivated, or institutionally disruptive.' The lawsuit, brought by Mr Anwar's former research assistant Muhammed Yusoff Rawther, concerns an alleged incident that took place in 2018, before Mr Anwar's appointment as prime minister in November 2022. Mr Yusoff, now 31, claimed to have suffered serious physical, psychological and social trauma as a result of the incident. Mr Anwar, 77, has denied the claims, saying the charges had been fabricated to smear his political image. His lawyers argue that such civil suits against a sitting prime minister risk interfering with his constitutional duties and could undermine the executive's ability to function. They cite Articles 5, 8, 39, 40, and 43 of the Federal Constitution, which outline executive powers, to support the need for immunity. They say that the matter should be tested before the Federal Court before any trial proceeds. The Prime Minister had filed the application on May 23, seeking the High Court, which is hearing the suit, to refer the eight legal questions to the Federal Court. The court's ruling means the civil case is now back on track for a full hearing from June 16, 2025, placing renewed scrutiny on Mr Anwar's administration. Mr Anwar's legal team can still appeal the decision with the Court of Appeal within 30 days. Mr Yusoff's lawyer, Mr Muhammad Rafique Rashid Ali, welcomed the June 4 ruling. 'The importance of today's decision ensures that in Malaysia right now, we have a judiciary that has stamped very clearly that there is equality for everyone under the Constitution,' he told The Straits Times. 'When an executive or a person in power wants to shield himself with immunity as proposed by Anwar Ibrahim or anyone in power later on, the normal people are being shielded against that executive use of power by the courts.' The premier has had his own past battles with the legal system, having been convicted for committing sodomy and abuse of power, charges which he has always maintained are politically motivated. Mr Yusoff has been detained by the police since September 2024. He is currently on trial for charges of drug trafficking and possessing imitation firearms, and faces life imprisonment and caning if convicted. He has denied the allegations and claimed he was framed by people in power. Hazlin Hassan is Malaysia correspondent at The Straits Times. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
7 hours ago
- Business Times
Who is behind Malaysia's IOI Properties Group?
[SINGAPORE] Property developer IOI Properties Group (IOIPG) is poised to grow its Singapore presence with the acquisition of the remaining 50.1 per cent stake in the South Beach development that it does not already own, from its joint venture partner City Developments (CDL). Upon the S$834.2 million acquisition, slated to complete by Q3 2025, IOIPG will gain full ownership of South Beach's commercial components, the group said in a Wednesday (Jun 4) bourse filing. This includes the 34-storey South Beach Tower housing Grade-A office units, the 634-room JW Marriott Hotel Singapore South Beach, and the restaurants and cafes in the complex. The mixed-use integrated development along Beach Road is now owned by both parties via an entity called Scottsdale Properties, which owns South Beach Consortium, which in turn owns South Beach. The acquisition, one of CDL's largest divestments, will expand IOIPG's Singapore investment property portfolio – even as it is already a major player in the city-state's real estate space. IOIPG has developed projects such as the IOI Central Boulevard Towers in the Marina Bay area. Nearby, in the pipeline is W Singapore - Marina View, a 350-room hotel slated to open in late 2028. Branded apartments W Residences - Marina View will be part of the 51-storey mixed-used development. Lee Yeow Seng, IOI's group chief executive officer, said: 'This acquisition will elevate the group's profile as a major landlord of premium office space and a prominent player in the hospitality industry within the Republic.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The deal will bring the total net lettable area (NLA) of IOI's Singapore investment assets to 1.8 million square feet (sq ft) and the total NLA of its property investment segment across Malaysia, Singapore and Xiamen, China, to 9.82 million sq ft. IOI's total assets across investment properties, hotel assets and property development assets stood at RM47.93 billion as of Mar, 31, 2025. News of the South Beach sale comes on the heels of CDL's announcement of its plans to divest assets in a bid to cut debt. The Business Times explains who is behind IOIPG, and throws light on its diverse portfolio of property developments in Singapore. What is IOI Group? The group is a Malaysian conglomerate that started off as a palm oil business before venturing into property. Its palm oil business is parked under IOI Corporation, one of Malaysia's largest palm oil companies; its property business is handled by IOIPG, the property arm of IOI Corporation. One of Malaysia's largest property entities by market capitalisation, IOIPG was carved out of IOI Corporation, and separately listed on the Malaysian stock exchange in January 2014. IOIPG has three core business segments: Property development, property investments and hospitality and leisure in the markets of Malaysia, Singapore and Xiamen, China. It has four-decades of experience in property development across residential, commercial and industrial offerings. IOI Corporation is among the 30 largest companies listed on the main board of the Malaysian stock exchange, and a constituent company on the bourse's benchmark index, the FTSE Bursa Malaysia KLCI. Who is IOI's founder, and who runs the business now? The late Malaysian magnate Lee Shin Cheng, who died in 2019, founded IOI Corporation and its property arm IOIPG, which is also listed on Bursa Malaysia. Born in 1939 in Kuala Selangor in the Malaysian state of Selangor, he was raised on a poor rubber plantation. He dropped out of school at 11 and started selling ice cream to support his family. He began working as a supervisor in a rubber estate at the age of 17, and worked his way up to becoming an estate manager before he turned 30. In 1975, he acquired a property company and over the years, developed the business. In 1982, he acquired Industrial Oxygen Incorporated. Renamed as IOI Corporation in 1995, it ventured into the palm oil business. After his death, his sons inherited stakes in IOI Group. Lee Yeow Chor is group managing director and chief executive of IOI Corporation, and Lee Yeow Seng is the group CEO of IOIPG. What other Singapore assets does IOIPG own? Beyond the integrated developments, IOIPG has a portfolio of high-end residential properties in Singapore. These include Seascape and Cape Royale, condominium developments in Sentosa Cove that were developed in partnership with Ho Bee Land. IOIPG also developed The Trilinq, a residential development in Clementi and Cityscape@Farrer Park. Last November, Lee Yeow Seng acquired Shenton House along Singapore's Shenton Way, in his personal capacity, for S$538 million.
