US judge sentences ex-Goldman Sachs banker to two years over 1MDB scandal

A US judge on Thursday sentenced a former Goldman Sachs banker central to the 1MDB scandal to two years in prison after prosecutors argued for leniency due to his cooperation.

Timothy Leissner, a key architect of the massive bribery and kickback scheme involving a Malaysian sovereign wealth fund, will begin serving a 24-month sentence in September, according to a spokesman for the US Department of Justice.

Leissner, who previously pleaded guilty to US bribery and money laundering counts, faced a maximum sentence of 25 years.

The 1MDB conspiracy involved billions of dollars that were raised to support energy and infrastructure projects but were instead pilfered or used to purchase yachts, jewelry and other luxury items.

The case resulted in “the only criminal case filed against Goldman Sachs in its 156-year history,” the firm said in a filing to the court that endorsed a tough sentence.

But prosecutors argued for leniency, citing Leissner’s “extraordinary” assistance to the probe after federal agents ambushed the defendant in June 2018 after he deplaned an international flight in Washington.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

The government’s brief cited “marathon meetings” with Leissner in which he turned over electronic devices and “displayed remarkable recall and spoke with precision about what he knew about the scheme,” which included repeatedly lying to colleagues at Goldman about his actions, the Justice Department said.

Leissner testified against Ng Chong Hwa, or “Roger Ng,” another former Goldman banker, at a New York trial in February 2022. Ng has been sentenced to 10 years after being found guilty, but has yet to begin his sentence, the Justice Department said.

Leissner also provided details that led to US charges against Low Taek Jho, a Malaysian financier known as “Jho Low” who remains at large.

In a letter to the court, Leissner, 55, called his crime “terrible” and expressed regret at time lost with children and ageing parents.

“I have had to publicly face the fact that I helped steal billions of dollars not just from individuals, but from an entire nation,” Leissner said.

But Goldman Sachs dismissed Leissner’s cooperation.

“Whatever personal and professional consequences Mr. Leissner may himself have experienced in recent years, those consequences are a natural and direct result of his brazen and audacious criminal conduct, not his cooperation,” Goldman said. AFP