U.S. prosecutors unveiled criminal charges Thursday against a Malaysian financier and a former Goldman Sachs banker, and announced that another former executive of the New York-based lender has pleaded guilty to laundering nearly $3 billion stolen from 1MDB. Aided by unnamed associates at "U.S. financial institution #1," Jho Low, Roger Ng and Tim Leissner "knowingly and willingly" evaded "internal accounting" and anti-graft controls while bribing Malaysian and Abu Dhabi officials to win and retain business for the bank, according to a 34-page indictment and other court documents. The suspects used shell companies and corporate accounts to funnel hundreds of millions...
U.S. officials on Wednesday filed 12 civil complaints seeking the forfeiture of more than $1 billion believed stolen from a Malaysian sovereign wealth fund and laundered through more than 20 banks worldwide.
The latest move by U.S. officials to confiscate hundreds of millions of dollars in assets believed tied to the theft of a now-estimated $4.5 billion from a Malaysian state fund further outlines how the money was first siphoned, then routed through global banks.
The embezzlement of more than $3 billion from 1Malaysia Development Bhd. has drawn new attention to the risk of banking sovereign wealth funds, leaving financial institutions that manage their accounts increasingly exposed to enforcement at home and overseas.