Two years too light, Johari says on Leissner's 1MDB sentence
Former Goldman Sachs banker Tim Leissner being hit with a mere two years' imprisonment might send the wrong message to global financial institutions, 1MDB asset recovery task force chairperson Johari Ghani said.
He said that Leissner's sentence was too lenient considering the scale and gravity of the role he played in the 1MDB scandal.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
18 hours ago
- Malay Mail
1MDB wins key ruling in Singapore as BSI Bank loses appeal over RM1.6b suit
KUALA LUMPUR, June 2 — A Singapore court has allowed 1MDB and its subsidiary Brazen Sky Limited to proceed with a US$394 million (RM1.68 billion) claim against BSI Bank over alleged misconduct in the global corruption scandal. According to a statement from plaintiff's representative, the High Court dismissed BSI Bank's attempt to strike out the lawsuit, reinforcing efforts to hold financial institutions accountable for their role in the scandal. 1MDB is accusing BSI and its former officers of facilitating the illegal transfer and laundering of public funds. The rejected appeal strengthens Malaysia's campaign to recover billions lost through corruption and mismanagement. 'We are pleased this application has been denied and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia's sovereign wealth fund,' a 1MDB spokesman said. 'Through this action and others around the world, we will ensure the rightful recovery and restitution of these assets back to the Malaysian people.' The court also ordered BSI, now in liquidation, to pay the legal costs of 1MDB and Brazen Sky. BSI has already been convicted in Switzerland over money laundering linked to the same scandal. Swiss authorities are now updating the conviction to highlight the specific crimes against 1MDB entities. Meanwhile, Brazen Sky's joint liquidators have filed a related claim against BSI and its former executives. Legal teams in Singapore and Kuala Lumpur are coordinating the asset recovery efforts in multiple jurisdictions.
Free Malaysia Today
18 hours ago
- Free Malaysia Today
‘Lenient' Leissner jail term may send wrong message, says Johari
Johari Ghani, chairman of the 1MDB asset recovery task force, said Tim Leissner's sentence is too lenient given the scale and gravity of the crime. PETALING JAYA : The light two-year prison sentence given to former Goldman Sachs banker Tim Leissner for his role in the 1MDB scandal risks sending the wrong message to global financial institutions, says 1MDB asset recovery task force chairman Johari Ghani. He said institutions such as Goldman Sachs are entrusted with safeguarding the interests of sovereign nations. 'Yet, instead of preventing wrongdoing, they enabled the misconduct that left Malaysia to bear both financial and reputational damage,' Johari said. He said Leissner's sentencing 'was an opportunity to send a clear and strong global message that white-collar crime will be met with serious consequences. Unfortunately, that opportunity has been missed'. Leissner, a former Southeast Asia chairman for Goldman Sachs, pleaded guilty in 2018 to a conspiracy to violate the Foreign Corrupt Practices Act of the US, and participating in a money laundering conspiracy, all tied to his role in the 1MDB scandal. During his sentencing on Thursday, he said he sincerely apologised to Malaysians, saying he had lost his freedom, family and financial independence in the wake of the scandal. However, Johari said Leissner's light sentence, despite the offence carrying a potential maximum sentence of 25 years, is too lenient given the scale and gravity of the crime. 'Leissner was one of the masterminds in one of the world's most serious financial scandals, which resulted in the misappropriation of billions of dollars from 1MDB. 'He played a central role in facilitating this fraud, abusing both his position and the reputation of one of the world's most prominent financial institutions to carry out this scheme,' he said. Johari also pointed out that the Malaysian government still has an unresolved dispute with Goldman Sachs over the US$1.4 billion (RM6 billion) asset recovery guarantee arising from the settlement agreement signed in 2020. 'This matter is still under arbitration. (Leissner's light sentence) adds to the public's frustration and reinforces the perception that powerful individuals can escape with minimal consequences,' he said. Prime Minister Anwar Ibrahim demanded in November last year that Goldman Sachs honour its settlement with Putrajaya. Johari also said previously that a lack of clarity in the settlement agreement during the Muhyiddin Yassin administration had allowed the bank to evade the full extent of its responsibilities to Malaysia. He said the New York-based investment bank had taken advantage of ambiguities in the document to sidestep the asset recovery guarantee given to the government under the agreement.
Free Malaysia Today
18 hours ago
- Free Malaysia Today
BSI Bank loses appeal to strike out 1MDB's US$394mil claim in S'pore
The suit in Singapore is part of 1MDB's worldwide efforts to recover assets misappropriated from the sovereign wealth fund. (AP pic) PETALING JAYA : The High Court in Singapore has rejected all appeals by the now-defunct BSI Bank Ltd to dismiss a US$394 million claim filed by 1MDB and its subsidiary Brazen Sky Ltd. The suit, filed on May 2, seeks redress for large-scale financial losses, said to be suffered as a result of unauthorised transfers and money laundering schemes through accounts at the bank, which is now under liquidation. 'We are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia's sovereign wealth fund. These efforts aim to ensure the rightful recovery and return of assets to the Malaysian people,' a spokesman for the 1MDB board said in a statement today. In the suit, 1MDB and Brazen Sky allege that BSI and several former officers played a key role in facilitating unauthorised transfers and money laundering schemes through BSI accounts, contributing to the massive 1MDB scandal that saw billions misappropriated from the sovereign wealth fund. BSI had sought to strike out the claim, arguing, among other matters, that the lawsuit was time-barred. However, on May 27, Justice Andre Maniam dismissed all of BSI's grounds for appeal and ordered the bank to pay costs to 1MDB and Brazen Sky. The court's decision clears the way for full legal action against BSI, which commenced in May, to proceed, 1MDB said. The bank has been operating as a merchant bank in Singapore since November 2005, offering private banking services. It is a wholly-owned subsidiary of BSI SA, a bank founded in 1873 and headquartered in Switzerland. In parallel with the appeals, the joint liquidators for Brazen Sky have filed related claims in the Singapore High Court against BSI and its officers as part of the ongoing global asset recovery push by 1MDB.
