Money & Banking

1MDB : Malaysia files criminal charges against 17 Goldman officials

Reuters Kuala Lumpur | Updated on August 09, 2019 Published on August 09, 2019

Malaysia filed criminal charges on Friday against 17 current and former directors at subsidiaries of Goldman Sachs Group following an investigation into a multi-billion-dollar corruption scandal that led to the demise of state fund 1MDB.

The US bank has been under scrutiny for its role in helping to raise $6.5 billion through bond offerings for 1Malaysia Development Bhd (1MDB), the subject of corruption and money laundering investigations in at least six countries.

But Malaysian prosecutors have said $2.7 billion of the proceeds were diverted and the offering statements filed with the regulators contained statements that were false, misleading, or involved material omissions.

Friday’s charges were brought under a section of the Malaysian Capital Markets and Services Act that holds certain senior executives responsible for offences that may have been committed by the firm, said Attorney General Tommy Thomas.

Published on August 09, 2019
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