Goldman Sachs faces criminal charges from officials in Malaysia, over the investment banks’ role in the misappropriation of multi-billion dollars from a Malaysian sovereign wealth fund.
Goldman had arranged and underwritten bond sales for 1Malaysia Development Berhad (1MDB) in 2012 and 2013. Malaysia's Attorney General, Tommy Thomas, suggested he would push for fines "well in excess" of the $600 million in fees received by Goldman Sachs on 1MDB deal, in addition to the $2.7 billion of proceeds from the bond sales that was allegedly unlawfully diverted. Two former Goldman Sachs employees, and two others connected to 1MDB, will face the criminal charges.
Goldman Sachs, however, said in in an emailed statement to TheStreet, "We believe these charges are misdirected, will vigorously defend them and look forward to the opportunity to present our case," while adding, "the firm continues to cooperate with all authorities investigating these matters."