Malaysia has filed a criminal complaint against Goldman Sachs and two of its bankers for false statements made in connection with the sale of bonds of the fund 1Malaysia Development Bhd (1MDB)
The Malaysian authorities filed a complaint against Goldman Sachs and two former bankers in the case of the sovereign fund 1Malaysia Development Bhd (1MDB).
Malaysia is intent on fining Goldman Sachs and incarcerating those responsible for the disappearance of about $ 2.7 billion from the 1MDB, said Attorney Tommy Thomas. It is the first time that the US bank, which has always rejected any kind of accusation, finds itself having to deal with criminal responsibility.
he fund is under investigation by several international jurisdictions on charges of money laundering and corruption. The 1MDB scandal exploded with rumors that the former Prime Minister of the country, Najib Razak, would have diverted a personal account of 681 million taken from the MDB on the eve of general elections in 2013.
With US lists that began trading in negative territory (-0.69% for the Dow, -0.61% of the S & P500), Goldman Sachs shares a -2.54% to 168.38 dollars. Last month Goldman Sachs shares fell 16.29% bringing the 2018 balance to -33.58%.
Documents presented false, misleading statements or omissions
A spokesman for Goldman Sachs called the charges "badly addressed" by announcing that the bank, always open to collaborating with the authorities, will vigorously defend itself against the accusations.
"The charges stem from the commission and the promise of false or misleading statements by all the defendants in order to appropriately appropriate $ 2.7 billion coming from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were agreed and signed by Goldman Sachs ", reads a statement by Thomas himself.
The prosecutor said that the criminal case was issued against Goldman Sachs, two former bankers, Tim Leissner and Roger Ng Chong Hwa, a former employee of 1MDB, Jasmine Loo, and financier Jho Low.
The bid documents, according to the note, presented false, misleading statements or material omissions. "As the principal advisor / arranger for these bonds, we expected higher standards from Goldman Sachs. They have not respected any standards ".
Fines above 3 billion, prison up to 10 years
Prosecutors, according to the Bloomberg agency, would have demanded "significantly higher" fines than the allegedly deducted 2.7 billion, in addition to the 600 million commissions collected by GS. For those involved, sentences could reach 10 years in prison.
"Fraud affects the heart of our capital markets [...] if we did not initiate criminal proceedings against the accused, the weakening of our financial system and the integrity of the market would go unpunished."