KUALA LUMPUR, Dec. 17 (Xinhua) -- Malaysia filed criminal charges on Monday against Goldman Sachs and two former executives over state investment fund 1Malaysia Development Berhad (1MDB) scandal.
In a statement, Malaysian Attorney General Tommy Thomas said Goldman Sachs and its former bankers Tim Leissner and Roger Ng are were charged under Malaysian laws over their alleged involvement in a scheme to defraud the Malaysian government.
"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate 2.7 billion U.S. dollars from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," Thomas said.
Leissner had previously pleaded guilty in the United States to conspiring to steal money from 1MDB. Ng was arrested in Malaysia and is pending extradition to the United States.
The two former Goldman Sachs bankers conspired with Malaysian businessman Jho Taek Low or Jho Low and former general counsel of 1MDB Jasmine Loo, who were also charged, to bribe Malaysian public officials to procure the participation of the bank in issuing the bonds, according to the statement.
"Goldman Sachs benefited by receiving underwriting and arranging fees of approximately 600 million U.S. dollars which was several times higher than the prevailing market rates and industry norms," said Thomas.
Tommy added that the scheme was designed to seem legitimate to defraud the Malaysian government and the purchasers of the bonds, but the accused had knowingly "misappropriated and fraudulently diverted" funds.
He also said Malaysian prosecutors will seek fines against Goldman Sachs and the accused individuals in excess of the 2.7 billion U.S. dollars allegedly misappropriated plus an additional 600 million U.S. dollars in fees that Goldman received for its work on the deals.
According to the charge sheets filed in a Kuala Lumpur court, the primary target is Goldman Sachs International (UK) which had arranged the sale of the three bonds with two being issued in 2012 and one in 2013.
Goldman Sachs had been reported as saying it believed the charges were "misdirected' and said it looked forward to presenting its case while reassuring that it would cooperate with all authorities on the matter.
