NEW YORK: Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison by a judge in a New York court on Thursday (May 29) after playing a key role in a multi-billion dollar scandal involving Malaysia’s sovereign fund 1MDB.
Malaysian and US authorities estimated US$4.5 billion was stolen from 1MDB in an elaborate scheme that spanned the globe and implicated high-level officials in the fund, former Malaysian Prime Minister Najib Razak, Goldman executives and others.
Leissner, a former Southeast Asia chairman for Goldman, pleaded guilty in 2018 to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, all tied to his role in the 1MDB scandal.
Leissner’s conduct was “brazen and audacious”, judge Margo Brodie said during sentencing. While his cooperation with the government was taken into account, it did not make up for the harm caused by the corruption at the highest levels in several countries, the judge said.
“First and foremost, I offer my sincere apology to the people of Malaysia,” Leissner, 55, told the hearing, his voice breaking as he read a statement. “I deeply regret my actions.”
Goldman helped sell US$6.5 billion of bonds for 1MDB, which former Malaysian Prime Minister Najib set up with the help of Low to promote economic development.
Some of the funds were diverted to offshore bank accounts and shell companies linked to Malaysian financier Jho Low, who is now a fugitive.
Leissner became a US government witness in the case after his arrest in 2018. He was allowed to remain free after he agreed to help the government in the investigation and testified against former banking colleague Roger Ng.
Ng has pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law. The former head of investment banking for Goldman in Malaysia was convicted in Brooklyn and sentenced to 10 years in prison, but transported to Malaysia in 2023 to assist probes there.
Leissner met with the government on dozens of occasions, reviewing countless documents and communications he received related to the 1MDB scheme and other matters, according to a filing by prosecutors.
“We respect the court’s decision today and Mr. Leissner is prepared to serve his sentence and continue his future life of good works and care for his family,” said his lawyer Henry Mazurek, a partner at Meister Seelig & Fein PLLC.
Prosecutors requested the court impose a sentence below the applicable guidelines range due to Leissner’s cooperation in the probe.
https://www.channelnewsasia.com/asia/new-york-malaysia-goldman-sachs-tim-leissner-prison-1mdb-5159391
