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Ex-Goldman Banker To Plead Guilty To 1MDB Criminal Charges, Forfeit $44 Million

By Tyler Durden | Zero Hedge | November 1, 2018

Last we checked in with former Goldman Sachs SE Asia chairman Tim Leissner, the banker was nearing the nadir of a dramatic fall from grace that resulted in him being terminated from the bank, as it sought to distance itself from a series of shady bond underwritings organized by Leissner.

Goldman, as first reported in 2016, was deeply involved with the Malaysian government’s efforts to seed the 1MDB development fund, which, as we now know thanks to the DOJ, was used by former Malaysian President Najib Razak as his own personal slush fund, with most of the money going to purchase luxury yachts, paints – and some of the money was even used to help finance the Hollywood blockbuster “The Wolf of Wall Street”. In total, Razak and his cronies are believed to have stolen nearly $700 million.

Leissner

Tim Leissner and Kimora Lee Simmons Leissner

Back in July, it was believed that Leissner was planning to cooperate with federal authorities, raising the possibility that he could help expose some of the endemically corrupt practices happening behind the scenes at the Vampire Squid. Since WSJ exposed the fraud back in 2015 after 1MDB missed bond payments, the scandal has riveted the financial press and drawn intense scrutiny from the DOJ, with AG Jeff Sessions calling it “kleptocracy at its worst.”

And now it appears Leissner – who is married to Kimora Lee-Simmons – has done just that. As the Wall Street Journal reported Thursday morning, the former banker is expected to plead guilty to conspiracy to launder money and violate the FCPA. As part of the settlement, he has agreed to a $44 million fine for his role in the scandal – a guilty plea that, we imagine, will lead to his eventual cooperation.

But while Leissner’s situation is hardly ideal, his former deputy has it even worse. Roger Ng, the former deputy director of Goldman’s SE Asia practice, is expected to be indicted by the DOJ, alongside Jho Low, the Malaysian financier whose exploits have been widely chronicled in the Western media. Low allegedly masterminded the 1MDB fraud.

Last week, Razak and his former Treasury secretary were charged with criminal breach of trust, months after Razak was imprisoned shortly after losing his reelection race to a rival who had promised to prosecute him.

As the DOJ prepares its announcement, attention will now turn to what, exactly, Leissner told investigators and whether his former employer could be held liable.

November 1, 2018 Posted by | Corruption, Deception | , , , | 3 Comments

Saudi gave grant money to Malaysia PM: FM Jubeir

Press TV – April 15, 2016

The Saudi foreign minister admits that the kingdom gave nearly USD 700 million to Malaysian Prime Minister Najib Razak, who has faced corruption charges since the huge grant came to light last year.

Adel al-Jubeir said Friday that the $681 million (£479 million) Riyadh offered to the premier was a “genuine donation with nothing expected in return.”

Last July, the Wall Street Journal revealed for the first time that some $700 million had been transferred to Najib’s private accounts before the 2013 general election. The report suggested that the money came from a state development fund.

At the time, Najib was already engulfed in a scandal surrounding state fund 1Malaysia Development Berhad (1MDB) and deposits into his private accounts worth around $680 million.

However, Malaysia’s attorney general cleared Najib of any criminal wrongdoing earlier this year, saying the $681 million transferred into his account back in 2013 was from the Saudi royal family and was personal donations.

According to the attorney general, Najib had returned USD 620 million of the money to the Saudi royal family in August 2013, about five months after the transfer.

The Malaysian opposition has challenged the attorney general’s ruling, arguing that the transfer of personal donations did not rule out corrupt motives or transactions.

On Friday, Saudi foreign minister said, “We are also fully aware that the attorney general of Malaysia has thoroughly investigated the matter and found no wrongdoing.”

The remarks by Jubeir came after leaders from across Malaysia’s political spectrum called for the ouster of Najib after he returned from a four-day visit to Saudi Arabia back in March.

The Malaysian premier came into office in 2009 promising a government free of corruption and a more relaxed rule.

April 15, 2016 Posted by | Corruption | , , | 1 Comment

Malaysian PM Won’t Face Charges over $681 Million Saudi ‘Gift’

teleSUR – January 26, 2016

Malaysia’s attorney-general has closed a lengthy corruption investigation involving the country’s prime minister.

Malaysian Prime Minister Najib Razak won’t be facing any legal consequences for a US$681 million donation from the Saudi royal family after the country’s attorney-general decided to drop the case on Tuesday.

“There was no reason given as to why the donation was made to PM Najib – that is between him and the Saudi family,” said Attorney-General Mohamed Apandi.

Najib returned all but US$61 million shortly after the money transfer in early 2013, during an election campaign, because it was not used, he said. The prime minister calls the donation, made to his personal account, a “gift” that was for the party and not meant for his own personal gain.

Opposition parliamentarian Tony Pua told The Guardian that the “basis to absolve the prime minister of any wrongdoing is utterly without merit because the ‘personal affair’ does not preclude corrupt motives or transactions.”

The scandal has dominated the Malaysian political scene for the past seven weeks, with his own party launching a public campaign demanding his resignation. Malaysia’s next elections are set to take place in 2018.

Apandi, who replaced the previous attorney general – dismissed by Najib for “health reasons” – will tell the country’s anti-graft commission to close the investigation into the prime minister.

One of the related probes of the commission includes US$932 million in misappropriated funds from SRC International, a subsidiary of 1Malaysia Development Berhad, which Najib chairs. About US$9.79 million of the funds ended up in Najib’s own account, reported the Wall Street Journal. Though Malaysia is Asia’s third-largest economy, it has suffered from the global drop in oil prices. Food, transportation and electricity prices have all risen as the government has slashed public subsidies.

January 26, 2016 Posted by | Corruption | , , | Leave a comment