Security & Fraud

Ex-Goldman Banker Extradited To US On 1MDB Charges

Ex-Goldman Sachs Banker Extradited To US

A former Goldman Sachs banker in Malaysia has been extradited to the U.S. to face charges stemming from the scandal at the 1MDB state fund.

According to a report in Reuters, Malaysia’s Attorney General Roger Ng, who has been in custody since November 1, 2018, has been sent to the U.S. for a period of 10 months. Under the agreement with the U.S., the case against Ng has to proceed quickly so he can face charges in his home country.

Ng had agreed to be sent to the U.S., but the extradition was delayed because Malaysia’s government argued he should first face criminal charges in Malaysia. After talks between the two countries, it was agreed that Ng would be sent to the U.S. for that time frame. He was sent on May 3 and will return to Malaysia to face charges once the case in the U.S. is over, noted the report. The two countries can agree to extend the temporary period if needed.

In the U.S., Ng is facing charges of conspiracy to launder 1MDB money, as well as violating the Foreign Corrupt Practices Act. In Malaysia, he is charged with four counts of abetting Goldman Sachs in providing misleading statements to potential investors of 1MDB bonds. Tim Leissner, another ex-Goldman Sachs official, and Malaysian Financier Low Taek Jho were hit with U.S. charges over the scandal. Reuters noted that Leissner pled guilty.

Goldman Sachs is the focal point of the 1MDB scandal, in which $6.5 billion was raised via three bond sales. Of that money, the Department of Justice has estimated that $4.5 billion was misappropriated by 1MDB fund heads from 2009 to 2014. Goldman Sachs, which helped to raise money for some of the funds, has denied any wrongdoing, arguing that it was lied to by members of the former Malaysian government and 1MDB about how the proceeds from the offerings would be used. Malaysia wants Goldman Sachs to pay as much as $7.5 billion in reparation, the report noted.


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