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Free Malaysia Today
4 days ago
- Business
- 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.
The Independent
29-05-2025
- Business
- The Independent
Ex-Goldman Sachs banker gets 2 years in prison for plot to fleece billions from Malaysia's 1MDB fund
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 1MBD, 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 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.'
Associated Press
29-05-2025
- Business
- Associated Press
Ex-Goldman Sachs banker gets 2 years in prison for plot to fleece billions from Malaysia's 1MDB fund
NEW YORK (AP) — 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 1MBD, 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 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. '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.'
Yahoo
17-05-2025
- Business
- Yahoo
Phantom cows and missing millions spark scandal in Uruguay
STORY: An investment scheme involving hundreds of thousands of 'phantom cows' has collapsed into one of Uruguay's biggest ever financial scandals. People have lost their life savings. Three companies have gone bust and are being investigated for fraud. The co-owner of one firm involved has died by suicide. And the losses have reached some $350 million - sending shockwaves throughout the stable farming nation. MENDEZ: 'These are common people who had their savings, who decided to trust this country and to buy cattle in a traceability system that provided them confidence in order to collaborate with the development of our country.' :: Artigas, Uruguay Sandra Palleiro is on the hunt for some cows. In March of 2024, she sunk her life savings, more than $50,000, into a 'cow bond' scheme offered by a local investment firm called Conexión Ganadera. 'They staged a photograph with 60 cows and two workers, poor people. It was devastating, it was horrible, devastating.' The idea was that the cattle would be reared and sold for profit by livestock farms. Paillero was promised fixed 7-10% dollar returns in a program that appeared to adhere to agricultural ministry rules. She was told she could track the cows via a state-backed online portal. And she liked the idea of owning a tangible asset. It seemed a safe bet. But here in this muddy field some 370 miles from Uruguay's capital Montevideo, tracking the 61 cattle she owns, at least on paper, is virtually impossible. She's far from the only one. Politicians, radio hosts, pensioners and priests are among some 6,000 people now attempting to recover their savings and their phantom cows, possibly up to 700,000 of them. Livestock is at the heart of Uruguay's economy, a country home to some 3.4 million people, and 12 million cattle. There are similar investment schemes throughout South America. Many are legitimate. :: Montevideo, Uruguay Martin Fablet, a local radio presenter, said he invested several times in Conexion Ganadera and other livestock schemes in the country over the past 12 years. 'They took your money to fatten an animal and if everything was carried out correctly, at the end of that period you'd have the money.' Conexion Ganadera is one of the biggest firms now under investigation for fraud. The first hint of the scandal at the company came in November 2024, when a Tesla Model 3 crashed at 130 miles per hour in the small city of Florida in central Uruguay. Behind the wheel was Gustavo Basso, a co-owner of Conexion Ganadera. A coroner concluded that he had taken his own life. Weeks after the crash, investors started reporting late payments. By January, the company confirmed it was short of nearly $250 million. Investors scrambled to withdraw savings amid reports that the firms did not hold as many animals as they claimed. Some filed suits for fraud. An investigation by Uruguay's Prosecutor's Office for Money Laundering Crimes is ongoing. FABLET: 'I think I have the possibility of kind of recovering, but a lot of people won't be able to. There are a lot of elderly people involved, a lot of retirees. They will suffer.' An inventory of Conexion Ganadera carried out by a bankruptcy trustee estimated that as few as 70-80 thousand cattle actually existed of the more than 800,000 the company claimed to manage. Pablo Carrasco, the company's co-owner, denies fraud allegations. Lawyers representing the company said they cannot comment on legal proceedings until testimony is given in court. Now, victims want to know how authorities failed to spot the problems - despite the cattle registry. The companies themselves were responsible for applying tags and adding information to the national database. Three lawyers for victims said it was possible the government-issued tags were never attached to the animals because the cattle were never purchased. Two other lawyers alleged cows owned by investors were sold off illegally, without their consent. Pedro Mendez represents some of the victims. 'We realized that there was a difference between what was invested and what was bought. Right now, we are reviewing what was recorded in the system and what was actually real, and we know there is a difference. In the system, some of our clients had 75 animals but today they have none.' Uruguay's national cattle registry said it would not comment on the cases. The livestock ministry did not respond to Reuters questions about whether the registry system failed. Back in Artigas, drone footage shows around 80 cattle - compared to what should be several hundred belonging to Palleiro and her fellow investors. 'I helped build two groups of emotional support because some people were about to commit suicide and some had psychiatric problems, or who were on medications, or who could simply not handle it anymore.' Palleiro says she's angry at the way so many hard-working Uruguayans are being hurt. 'That money was my retirement. I'm fighting for my savings and for the retirement I earned through my effort.'
Yahoo
17-05-2025
- Business
- Yahoo
Phantom cows and missing millions spark financial scandal in Uruguay
By Lucinda Elliott ARTIGAS, Uruguay (Reuters) - Sandra Palleiro is on the hunt for her lost cows. The 60-year-old accountant is standing in a muddy field at the end of a farm track in Uruguay's remote border region with Brazil. She has traveled 600 kilometers (370 miles) from the capital, Montevideo, to find 61 cattle she owns, at least on paper. The missing bovines were part of a "cow bond" scheme that has collapsed, causing one of Uruguay's biggest ever financial scandals. The co-owner of one Uruguayan firm that took money from savers to invest in cows has died by suicide. Three companies have gone bust and are under investigation for fraud. "Hello moo-moo! Could one of you be mine?" Palleiro called out hopefully into a paddock in the border region of Artigas, her jeans caked in mud as she approached a wire fence to get a closer look at the cows. Palleiro - like hundreds of other investors - is unable to find the animals she owns or prove they even exist, making them part of a herd of "phantom cows" that could number over 700,000 head of cattle. So far, the losses have mounted to some $350 million, roiling the stable farming nation, home to just 3.4 million people - but 12 million cows. It has also sent shockwaves through bigger ranching neighbors Argentina and Brazil, which looked to Uruguay's cattle-tracking system as a model and where similar livestock investment schemes operate. In March 2024, Palleiro put her life savings of over $50,000 into the livestock investment scheme offered by a local firm named Conexión Ganadera, lured by promises of fixed 7-10% dollar returns and investment materials with bucolic pictures of brown-and-white Hereford cattle. Savers could own cows directly that would be reared and sold for profit by livestock firms, or take an investment stake in the overall scheme. Palleiro, an urban professional, liked the idea of owning a tangible asset. It seemed a safe bet. She could track the cows via a state-backed online portal - for years an example globally for cattle tracking - which set out breed, age and location. Each cow was supposed to be branded with a symbol assigned by the government and documents listing her assets carried the crest of the agriculture ministry, which oversees the cattle registry. Uruguay's national cattle registry declined to comment on the cases. When she went in search of her cows, Palleiro carried print copies from the cattle registry to see if she could match the 53 tracking numbers linked to this ranch with the tags of the cows staring at her on the opposite side of the fence. Using her smartphone camera, she zoomed in on the tracking numbers pinned to their ears. It soon became clear few of the numbers matched. Then the cows started backing away. She couldn't get close enough. The exercise felt hopeless. "It feels like falling into a nightmare," said Palleiro. TESLA CRASH Three of the biggest firms under investigation for fraud are Conexión Ganadera, República Ganadera and Grupo Larrarte, which between them persuaded nearly 6,000 people or investor pools to buy into the program, investing millions of dollars. Similar investment schemes exist throughout South America, in Argentina, Brazil and Colombia. Many are legitimate. Martín Fablet, a local radio presenter in Montevideo, said he invested several times in Conexión Ganadera and other livestock schemes in Uruguay over the past 12 years: "This system of receiving fixed dollar returns worked fantastically well for at least 11 years. They paid me on time." The first hint of the scandal at Conexión Ganadera came on November 28 last year, when a Tesla Model 3 car crashed at 211 kilometers per hour in the small central Uruguayan city of Florida. Behind the wheel was Gustavo Basso, one of the co-owners of Conexión Ganadera, which had boomed since opening in 1999. Weeks after he drove his car into a parked construction vehicle, investors started reporting their payments from the cattle scheme were late, and by January the company confirmed it was short of nearly $250 million. A coroner concluded in April that Basso had died by suicide. Conexión Ganadera was one of the three funds that started to warn late last year that they were unable to fulfill obligations to investors. They were short of cash, which they blamed on adverse weather (there had been a drought in 2022-23) and tough market conditions. By late January, investors were scrambling to withdraw savings amid reports of fraud. Some filed suits for fraud, leading to bankruptcy proceedings and an official investigation by Uruguay's Prosecutor's Office for Money Laundering Crimes, which remains ongoing. The prosecutor declined to comment to Reuters. Pablo Carrasco of Conexión Ganadera denies fraud allegations. Lawyers representing Conexión Ganadera said they were unable to comment on legal proceedings until testimony was given in court. Grupo Larrarte's lawyer said the firm was fully cooperating with the authorities. República Ganadera did not respond to a Reuters request for comment. 'MAYBE THE COWS WERE FAKES' Politicians, radio hosts, pensioners and even priests are among the thousands now attempting to recover their savings - and their missing 'phantom' cattle, the number of which is proving hard to pin down. An inventory of the biggest firm, Conexión Ganadera, carried out by a bankruptcy trustee estimated that as few as 70,000-80,000 of the 804,604 cattle the company claimed to manage actually existed. In another court case into fraud allegations, Uruguay's Ministry of Agriculture and Livestock (MGAP) said in March that one of Conexión Ganadera's main cattle holding firms, Pasfer, had only 49 of the 3,740 cows that it put up as collateral to secure a loan. "We don't know if the cows were ever bought, whether they're alive or dead," Palleiro said during a drive along country lanes to the Artigas ranch. "Maybe the cows were fakes, or sold, moved somewhere or their tags were changed." Victims want to know how authorities failed to spot the problems despite the cattle registry. Three lawyers for victims said it was possible that the government-issued tags were never attached to the animals because the animals were never purchased, and the investments were used for other purposes. Two other lawyers representing investors in bankruptcy and fraud cases alleged that cows owned by investors were sold off illegally, without their consent. Each company was responsible for applying the tags and in-putting data to the national registry. "The registry reflects what the company provided. The problem is that there was no control over what the company provided," said one of the lawyers, Nicolás Hornes, who represents 98 victims. Hornes said he went to several farms and found that the number of cattle did not match the registry. Two other investors Reuters spoke to told similar stories of trying to find their cows. Uruguay's livestock ministry did not respond to Reuters questions about whether the registry system failed. COMPANIES UNDER INVESTIGATION An executive from Grupo Larrarte, the first firm to receive formal complaints from investors, is already in prison as part of an ongoing criminal investigation, which is separate from bankruptcy proceedings. Jairo Larrarte was placed in preventive detention by a judge in April for alleged crimes of misappropriation, fraud and issuing bad checks. In a response to Reuters, his lawyer Enrique Möller said that his client had fully cooperated with the authorities and that cattle had already been returned to some investors. República Ganadera filed for voluntary bankruptcy in November, which the courts rejected in March because authorities opened an investigation into the company's accounts. Negotiations with creditors continue and the firm said in a March 25 statement that it was "prioritizing the best possible solution" for those affected. The company did not respond to Reuters' requests for comment. There are several open investigations into Conexión Ganadera, the biggest of the three. The company's co-owner, Pablo Carrasco, his wife Ana Iewdiukow and Basso's widow, Daniela Cabral, are being investigated for fraud and embezzlement. In February all three were temporarily barred from leaving Uruguay without court authorization and their passports confiscated. Carrasco's lawyer Jorge Barrera said there would be no comment to the media. SNAKE CHARMER Basso, whose high-speed crash presaged the company's downfall, lived in grand style in the city of Florida, which has a small-town feel, home to 30,000 people surrounded by farmland. Fablet, the local radio presenter, said he met Basso some 50 times over the course of a decade, socially and while covering agriculture events for radio. "(Basso) was a snake charmer," said Fablet, a longtime investor in Conexión Ganadera. "He could never simply lose $250 million... he could've made a loss, but that money must be somewhere." Back at the Artigas farm, Reuters drone footage showed around 80 animals compared to what should have been several hundred belonging to Palleiro and other investors. Farmhands at the ranch explained that more animals were out in other fields. Several mentioned delays to salary payments since the scandal broke and they said there was no easy way of checking which, if any, belonged to Palleiro. Palleiro herself was angered at the way the case was hurting so many hard-working Uruguayans. She had at times taken on three jobs to put together a nest egg for her retirement. "We put in all our savings that cost us a lot of effort," she said with emotion. "Now we want justice."
