Security & Fraud

Former Goldman Sachs Director Waives Extradition In Malaysia 1MDB Scandal

1MBD

An ex-Goldman Sachs banker who’s accused of being involved with a multibillion-dollar scandal in Malaysia has requested to be sent to the U.S. to face his charges, according to a report in the Financial Times.

Roger Ng, who used to be a managing director Goldman Sachs, was arrested in Malaysia in November for his alleged involvement in embezzlement involving the state investment fund 1MDB.

He was charged by the U.S. Department of Justice with conspiring to launder billions from the fund, and also with bribing Abu Dhabi and Malaysian officials.

His lawyer, Tan Hock Chuan, said that Ng reached a bail agreement with the DOJ and asked to return to the United States within 30 days. He’s waived extradition (there won’t be an extradition hearing) and he will plead not guilty, according to his New York lawyer.

The indictment against Ng says he aided in the misappropriation of upwards of $2.7 billion from three 1MDB bonds that were set up by Goldman Sachs in 2012 and 2013. He faces criminal charges in Malaysia as well.

Another man authorities suspect to be at the center of the scandal, Jho Low, is facing similar charges, and so is former Goldman Sachs partner Tim Leissner. Leissner has pleaded guilty to bribery, conspiracy and money laundering. Low has denied the charges and is at large.

The 1MDB probe is a move by Malaysian Prime Minister Mahathir Mohamad, who ousted the scandal-plagued former PM Najib Razak last May. Razak faces 42 charges ranging from abuse of power to money laundering. He has pleaded not guilty to all charges.

Razak’s trial, which has gripped Malaysia, was recently postponed. Goldman Sachs was also implicated, but it said it would defend itself.

“As we have said all along, we are outraged that any employee of the firm would undertake the actions detailed in the government’s charges,” a Goldman Sachs spokesperson said.

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