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10 facts about 1MDB scandal involving ex-Goldman Bankers

by Purvai Dua
1st Nov 18 3:43 pm
  1. Two former Goldman Sachs bankers and Malaysian financier Jho Low have been charged today with conspiring to launder billions of dollars in from the Malaysian sovereign-wealth fund, also known as the 1MBD scandal.
  2. According to the Department of Justice, Tim Leissner, a former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy and agreed to forfeit $43.7m.
  3. Roger Ng, the other charged former Goldman banker, was arrested in Malaysia, prosecutors said.
  4. Jho remains at large, the Department of Justice added.
  5. Goldman Sachs, which generated about US$600m in fees for its work with 1MDB, has in the past repeatedly denied any wrongdoing and said it is fully cooperating with authorities.
  6. It has also been reported that a private jet, Bombardier Global 5000 jet, allegedly bought by fugitive financier Jho from the stolen fund will now be sold.
  7. The jet is the second asset linked to 1MDB to go on sale. Earlier this week, Malaysia put up for auction the Equanimity, a $250m luxury yacht, also allegedly bought by Low.
  8. The proceeds from the sale will be held in an account maintained by the US pending the conclusion of the asset forfeiture case.
  9. Around $4.5bn was siphoned from 1MDB, and used by Low and his associates to buy the jet, the yacht, as well as Picasso paintings, jewelry, and real estate, the DOJ added.
  10. US Attorney General Jeff Sessions called the scandal “kleptocracy at its worst” in a speech last year.

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