Latest news with #1MalaysiaDevelopmentBerhad
NBC News
7 days ago
- Business
- NBC News
Ex-Goldman Sachs banker gets 2 years in prison for plot to fleece billions from Malaysia's 1MDB fund
NEW YORK — A former Goldman Sachs banker was sentenced Thursday to two years in federal prison for his role in a $4.5 billion scheme to ransack a Malaysian state investment fund. Tim Leissner, at his sentencing in Brooklyn federal court, apologized to the people of Malaysia, who he called the 'real victims' of the scheme. 'The funds raised more than a decade ago could have profoundly benefited the nation and its citizens,' he said in a statement read in court and provided by his lawyers. 'Instead, due to my greed — and the greed of those involved alongside me — they were misappropriated.' Prosecutors said Leissner and other Goldman Sachs bankers helped the Malaysian investment fund known as 1MDB, or the 1Malaysia Development Berhad state fund, raise $6.5 billion through bond sales. But they say more than $4.5 billion of the funds were stolen and laundered through bribes and kickbacks. The spoils bankrolled extravagant purchases, from wild parties to lavish spending on jewels, art, a superyacht and luxury real estate, prosecutors have said. They also helped finance the 2013 Martin Scorsese film 'The Wolf of Wall Street' that starred Leonardo DiCaprio. The scandal led to the fall of Malaysian Prime Minister Najib Razak's government in 2018. Najib was later convicted by a Malaysian court of abuse of power and other crimes related to the scandal and sentenced to 12 years in prison. 'What we did was unequivocally wrong, and I take full responsibility for my role,' Leissner said Thursday. 'I deeply regret my actions, and if I could turn back time, I would undo them without hesitation.' Leissner had pleaded guilty in 2018 to bribing government officials in Malaysia and Abu Dhabi. He served as a key government witness in the trial of Roger Ng, a fellow former Goldman Sachs banker who was sentenced in 2023 to 10 years in federal prison. Ng's lawyers described the looting of 1MDB as 'perhaps the single largest heist in the history of the world,' but maintained that prosecutors scapegoated him for crimes committed by others, including the higher-ranking Leissner. Prosecutors declined to comment on Thursday's sentence. They had not sought a specific prison term in filings ahead of sentencing while lawyers for Leissner had sought a sentence of time already served. Leissner is due to report to prison Sept. 15 and his lawyers have requested that he be sent to the federal prison in Otisville, New York, according to the prosecutors. Henry Mazurek, Leissner's lawyer, said his client is prepared to serve his sentence. It includes two years of supervised release after prison and a forfeiture totaling $43.7 million, which already has been paid to Malaysia, he said. 'Mr. Leissner cooperated not only to obtain leniency at sentencing, but to show his true remorse for his actions and tell the full story of 1MDB and Goldman Sachs,' Mazurek said in an email. 'He did that and will continue to tell all who will listen about the poisonous culture at Goldman that inspired the 1MDB scheme.'
New Straits Times
23-05-2025
- Business
- New Straits Times
Luxembourg bank fined over Malaysian 1MDB fund scandal
LUXEMBOURG: A Luxembourg court Thursday fined Edmond de Rothschild bank 25 million euros (US$28 million) for its role in a money-laundering scandal in which a Malaysian wealth fund lost billions of dollars. "This is the first time that a Luxembourg banking establishment has been convicted in a money laundering case," the Grand Duchy's judicial authorities noted following the punishment in the so-called "1MDB" affair, involved the misappropriation of money from 1Malaysia Development Berhad. The fund, created in 2009 as then Prime Minister Najib Razak set out to to modernise Malaysia, soon found itself embroiled in corruption allegations, leading to a swathe of investigations notably in Switzerland, Singapore and the United States. "A very large portion of the funds raised by 1MDB was siphoned off ... particularly between 2009 and 2013, by the prime minister, Malaysian officials, and others," the court stated. In Luxembourg, which hosts the European subsidiary of Switzerland's Edmond de Rothschild bank, dozens of accounts opened at the establishment by an Emirati national in the name of a slew of different companies were used to divert money away from the fund. An investigation which opened in the Grand Duchy in 2016 "established that through complex international financial flows, funds from 1MDB were ultimately credited to the bank accounts of several of these entities." Before arriving in the accounts, the cash moved through a number of different financial jurisdictions, including Caribbean tax havens, the court said. The bank stressed in a statement that the events had taken place "fifteem years ago" and had led to the "implementation of a comprehensive remediation plan... completed in 2019." "The employees involved are no longer part of the organization," the statement read. Razak, 71, who served as prime minister until 2018, was found guilty two years later of abuse of power and misappropriation of funds – a case that essentially cost him the 2018 elections. He was initially sentenced to 12 years' imprisonment in 2020 but the sentence was halved by a pardons board in February last year. The former prime minister is currently seeking to have his jail term converted to house arrest. Thursday's judgment closes the case regarding criminal liability of the bank. Two other investigations are ongoing, one concerning the Emirati client and his companies, and the other targeting executives and employees of Edmond de Rothschild Europe.
Malay Mail
23-05-2025
- Business
- Malay Mail
Luxembourg court hits Edmond de Rothschild bank with record €25m fine over 1MDB scandal
LUXEMBOURG, May 23 — A Luxembourg court yesterday fined Edmond de Rothschild bank €25 million (RM120.6 million) for its role in a money-laundering scandal in which a Malaysian wealth fund lost billions of dollars. 'This is the first time that a Luxembourg banking establishment has been convicted in a money laundering case,' the Grand Duchy's judicial authorities noted following the punishment in the so-called '1MDB' affair, involved the misappropriation of money from 1Malaysia Development Berhad. The fund, created in 2009 as then prime minister Datuk Seri Najib Razak set out to to modernise Malaysia, soon found itself embroiled in corruption allegations, leading to a swathe of investigations notably in Switzerland, Singapore and the United States. 'A very large portion of the funds raised by 1MDB was siphoned off ... particularly between 2009 and 2013, by the prime minister, Malaysian officials, and others,' the court stated. In Luxembourg, which hosts the European subsidiary of Switzerland's Edmond de Rothschild bank, dozens of accounts opened at the establishment by an Emirati national in the name of a slew of different companies were used to divert money away from the fund. An The investigation which opened in the Grand Duchy in 2016 'established that through complex international financial flows, funds from 1MDB were ultimately credited to the bank accounts of several of these entities'. Before arriving in the accounts, the cash moved through a number of different financial jurisdictions, including Caribbean tax havens, the court said. The bank stressed in a statement that the events had taken place '15 years ago' and had led to the 'implementation of a comprehensive remediation plan... completed in 2019.' 'The employees involved are no longer part of the organisation,' the statement read. Najib, 71, who served as prime minister until 2018, was found guilty two years later of abuse of power and misappropriation of funds — a case that essentially cost him the 2018 elections. He was initially sentenced to 12 years' imprisonment in 2020 but the sentence was halved by a pardons board in February last year. The former prime minister is currently seeking to have his jail term converted to house arrest. Yesterday's judgment closes the case regarding criminal liability of the bank. Two other investigations are ongoing, one concerning the Emirati client and his companies, and the other targeting executives and employees of Edmond de Rothschild Europe. — AFP
The Sun
22-05-2025
- Business
- The Sun
Luxembourg bank fined over Malaysian 1MDB fund scandal
LUXEMBOURG: A Luxembourg court Thursday fined Edmond de Rothschild bank 25 million euros ($28 million) for its role in a money-laundering scandal in which a Malaysian wealth fund lost billions of dollars. 'This is the first time that a Luxembourg banking establishment has been convicted in a money laundering case,' the Grand Duchy's judicial authorities noted following the punishment in the so-called '1MDB' affair, involved the misappropriation of money from 1Malaysia Development Berhad. The fund, created in 2009 as then Prime Minister Najib Razak set out to to modernise Malaysia, soon found itself embroiled in corruption allegations, leading to a swathe of investigations notably in Switzerland, Singapore and the United States. 'A very large portion of the funds raised by 1MDB was siphoned off ... particularly between 2009 and 2013, by the prime minister, Malaysian officials, and others,' the court stated. In Luxembourg, which hosts the European subsidiary of Switzerland's Edmond de Rothschild bank, dozens of accounts opened at the establishment by an Emirati national in the name of a slew of different companies were used to divert money away from the fund. An The investigation which opened in the Grand Duchy in 2016 'established that through complex international financial flows, funds from 1MDB were ultimately credited to the bank accounts of several of these entities'. Before arriving in the accounts, the cash moved through a number of different financial jurisdictions, including Caribbean tax havens, the court said. The bank stressed in a statement that the events had taken place 'fifteem years ago' and had led to the 'implementation of a comprehensive remediation plan... completed in 2019.' 'The employees involved are no longer part of the organization,' the statement read. Razak, 71, who served as prime minister until 2018, was found guilty two years later of abuse of power and misappropriation of funds -- a case that essentially cost him the 2018 elections. He was initially sentenced to 12 years' imprisonment in 2020 but the sentence was halved by a pardons board in February last year. The former prime minister is currently seeking to have his jail term converted to house arrest. Thursday's judgment closes the case regarding criminal liability of the bank. Two other investigations are ongoing, one concerning the Emirati client and his companies, and the other targeting executives and employees of Edmond de Rothschild Europe.
The Star
06-05-2025
- Business
- The Star
1MDB's lawsuit against me is malicious, former chairman tells court
KUALA LUMPUR: Former 1Malaysia Development Berhad (1MDB) chairman Tan Sri Mohd Irwan Serigar Abdullah has told the High Court here that the sovereign wealth fund had bad intentions when it filed the lawsuit against him in May 2021. Mohd Irwan said this was because he was a senior and high-ranking civil servant, holding the post of Finance Ministry secretary-general when Datuk Seri Najib Razak was prime minister and also finance minister. "1MDB's main target was Najib. However, they wanted to blame someone other than him and I was an easy target because of my position as the ministry secretary-general. "1MDB also wanted to sensationalise their case by falsely alleging that I was aligned to Najib and his alleged wrongdoings and that I, somehow, conspired or colluded with Najib in failing in my duties and responsibility to take the relevant steps to investigate the wrongdoers," he said. Mohd Irwan said this in his witness statement when testifying as the second defendant during the hearing of the US$6.59bil lawsuit filed by 1MDB, as plaintiff, against him and former 1MDB chief executive officer Arul Kanda Kandasamy for breach of trust and conspiracy. Mohd Irwan, who was former Treasury secretary-general, said the suit was clearly selective prosecution and done only to bring disrepute against him. He said this was clear as he had resigned in 2018 and it was only three years later in 2021 when the government changed hands after the 14th General Election, was the action filed against him. He said that at no point in time from May 2018 till May 2021 was a demand issued against him or was he asked to answer any allegations or given a chance to explain matters belatedly raised against him. "Their conduct of bad faith is further shown when they filed this claim for alleged breach of duties as member of the board but yet, chose not to include the remaining members of the board at that material time, namely Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob, despite being aware that all decisions were collective decisions and none of the allegations made was a decision that I made on my own accord or attempted to push through without the consensus and approval of the entire board," he said. Mohd Irwan said as a result of the lawsuit, he lost his reputation and his credibility had been tarnished. "I am subject to ridicule and having to defend myself constantly. As a result, it is very difficult for me to continue to hold certain directorships as people are sceptical and weary of the allegations that have been made against me. Apart from that, I had to incur legal expenses in appointing solicitors to defend me," he said. The hearing before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on May 19. In May 2021, 1MDB filed a lawsuit against Mohd Irwan and Arulkanda, accusing them of breach of trust and conspiracy, which led to losses of US$1.83bil, linked to the company's investment in 1MDB-Petrosaudi Ltd, which was subsequently converted into the Brazen Sky Limited investment, purportedly recoverable from the Bridge Global Fund. 1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5bil in company funds paid to Aabar Investments and US$1.265bil paid to International Petroleum Investment Company on May 9, 2017. 1MDB further alleged that Mohd Irwan conspired with Arul Kanda to extend his employment agreement, resulting in a payment of RM2,905,200 to Arul Kanda, all while disregarding the company's interests, which ultimately led to financial losses and damages. Consequently, 1MDB is seeking US$6.59bil in damages from both defendants and an additional RM2.9mil from Mohd Irwan related to the extension of the employment agreement. – Bernama
