Goldman Sachs' former executive receives a 2-year prison term in connection to the 1MDB scandal.
In a courtroom in New York, Tim Leissner, the former Southeast Asia chairman of Goldman Sachs, was sentenced to two years in federal prison for his role in the 1MDB scandal. The scandal, which involved the diversion of billions of dollars from a Malaysian investment fund, has left a trail of legal consequences for those involved.
Leissner pleaded guilty to U.S. charges including conspiracy to launder money and admitted to bribing officials to secure bond deals for Goldman Sachs. As part of his plea, he agreed to forfeit $43.7 million. His prison term is set to begin on September 15.
The Justice Department accused Leissner, along with others, of conspiring to bribe government officials and laundering billions of dollars fraudulently diverted from Malaysian investment fund 1MDB between 2009 and 2014. Millions of dollars were used to buy art, real estate, and other luxury items, and to produce the movie "The Wolf of Wall Street."
Leissner received about $73.4 million in kickbacks and aided in the transfer and laundering of hundreds of millions of dollars connected to the scheme. His cooperation with prosecutors did not completely make up for the harm caused by his actions, according to Judge Margo Brodie.
In an unusual twist, during the sentencing hearing, Leissner apologized for his actions and expressed regret if he could turn back time. However, his former employer, Goldman Sachs, took issue with his misconduct at the bank, putting it at risk. The bank's statement, read in court, suggested that but for Leissner's conduct, there would be no reason to cooperate.
Despite Leissner’s forfeiture agreement and the bank's hefty settlement with Malaysia, some funds Leissner handled remain unaccounted for. His testimony was critical in the prosecution of Goldman Sachs and others, but ongoing litigation and appeals continue. The U.S. Department of Justice has also recovered and returned portions of stolen 1MDB funds to Malaysia, and various jurisdictions continue efforts to recover misappropriated assets.
In a separate development, Xavier Justo, a whistleblower who exposed the scandal, was seeking $18 million in restitution from Leissner, but the judge on Thursday denied the request. As Leissner left the courtroom on Thursday, he was served a subpoena reportedly from Goldman Sachs.
The current status of the repayment ordered to Goldman Sachs by Tim Leissner involves ongoing court proceedings addressing related claims and appeals. As of now, Leissner has yet to repay any compensation to Goldman Sachs. The large-scale financial reparations ordered have largely been implemented through these settlements and forfeitures.
In the aftermath of the 1MDB scandal, Tim Leissner, former chairman of Goldman Sachs in Southeast Asia, has been sentenced to two years in federal prison for his role in the case. This business scandal, involving financial misappropriation and money laundering, has also impacted the general news domain as it implicates a global financial institution.
Additionally, the collateral damages from this scandal extend beyond financial losses, as the case is closely linked to crime and justice, with Leissner pleading guilty to bribery and money laundering charges. His former employer, Goldman Sachs, in response, has pursued litigation in an attempt to limit the damage caused by Leissner's actions.
