According to reports, Goldman Sachs in under strict surveillance in at least six different countries for its presence in the scandal of 1 Malaysia Development Bhd state fund.
Malaysia has finally decided to go ahead with charging criminal charges against Goldman Sachs and two of its employees in their connection to the corruption and money laundering probe at the 1 Malaysia Development Bhd. Goldman Sachs, which is basically a United States of America based investment bank has been facing a lot of scrutiny because successfully raised up to $6.5 billion in three bond offerings for the 1 Malaysia Development Bhd. It is currently under strict investigations in a few of the countries because of this bond offering.
Tommy Thomas, who is basically Malaysia’s Attorney General gave a statement on 17th of December stating all the charges against Goldman Sachs has already been filed. Charges are also being filed against the subsidiaries of Goldman Sachs. Charges also include filing against Tim Leissner, Jasmine Loo Ai Swan, and Low Taek Jho, who were former employees of the 1 Malaysia Development Bhd. A Goldman Sachs employee Roger Ng Chong Hwa is also charged by Malaysia.
The charges which are filed are all because of false and misleading statements given by company to dishonestly use $2.7 billion with help of these three bonds issued. Goldman Sachs has come out and said that they have done nothing wrong and they have denied all the allegations against them.
Goldman Sachs has mentioned in an email that all the charges filed by Malaysia are all misdirected and they will be happy to cooperate with the investigations which will be done by all the authorities.
According to reports, Goldman Sachs has successfully able to pocket $600 million from the three bonds they had with 1 Malaysia Development Bhd. According to Thomas, the fees are often higher compared to the market rates. Leissner and NG have also said that they have received a higher amount of bonuses and it had nothing to do with the bond.
According to Thomas, these allegations, which are put by Malaysia are all violation of their securities law and Malaysia will have to end up paying for all the criminal fines. Malaysia is looking for jail terms up to 10 years on each of the people who are involved in this case.
Leissner, the former chairman of Goldman Sachs of South East Asia and NG the managing director of Goldman Sachs, are serving for criminal charges because of the 1 Malaysia Development Bhd case in the United States. These charges have now converted into a total scandal that has shocked the whole industry of investment banks.
According to authorities of the United States, a total of $2.7 billion has been embezzled from the state fund by Goldman Sachs and the money was used to buy houses and private jets and also finance films like Wolf of Wall Street.