Business

Malaysia charges 17 Goldman Sachs figures over 1MDB scandal

By
Kevin Dugan
Published Aug. 9, 2019
Updated Aug. 9, 2019, 9:00 p.m. ET

Seventeen current and former Goldman Sachs bankers face as long as 10 years in Malaysian prison for their alle𝔍ged role in one of the laꦕrgest international embezzlement scandals, according to new criminal charges filed by the country’s attorney general.

Malaysia 🐷Attorney General Tommy Thomas accused bankers — including the Chairman of Goldman Sachs International — of “conniving” to commit fr🍨aud by helping playboy financier Jho Low raid a massive wealth fund to pay for about $3 billion in real estate, yachts and parties with celebrities like Kanye West.

The bankers, who were employed in thr🐼ee different Goldman subsidiaries in Singapore, China and Europe, are accused of helping Low raise about $6 billion for the 1Malaysia Development Berhad — knowing that the fund was a sham and money would go to bribes and Low’s lifestyle.

“They occupied the highest executive positions in those 3 Goldman Sachs subsidiaries, and exercised or ought to have exercised decision-making authority over the transac𓃲tions of those bodies corporate,” according to a press release fro🌄m the Malaysia AG’s office.

The charges have ensnared Richard Gnodde, the chairman of Goldman’s internationa♛l arm in Brusse💯ls, and J. Michael Evans, a former partner who’s now president of Alibaba.

In addition to the maximu🎀m 10-year prison sentence, the bankers face🅷 a fine of 1 million ringgit, or about $238,000.

“We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended,” a Goldman spokesman said in a statement. “Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions.” A rep for Evans wasn’t immediately available.

The new charges escalate the Malaysian investigation into the bank for its role in one of the largest international emb▨ezzlement scandals. The country is seeking $7.5 billion in relief.