London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Malaysia Files Criminal Charges Against Goldman Sachs Execs in 1MDB Scandal. Other countries might be also victim of similar scandal.

Malaysia filed criminal charges against 17 current and former Goldman Sachs Group Inc. employees, stepping up its efforts to prosecute individuals it alleges were involved in frauds related to the state investment fund 1MDB. Those charged include firm Vice Chairman Richard Gnodde. Custodial sentences, fines sought against 17 individuals.

Goldman Sachs Vice Chairman Richard J. Gnodde and John Michael Evans, a former partner at the U.S. bank who’s now president of Alibaba Group Holding Ltd., were among those charged. They were directors of three Goldman Sachs units that Malaysia has accused of misleading investors when arranging $6.5 billion in bond sales for 1MDB in 2012 and 2013.

The directors knew the funds would be misappropriated, Malaysian officials allege. The country announced charges against the entities in December, though prosecutors have struggled to serve to the respective Goldman Sachs units. Malaysia will seek custodial sentences and criminal fines against the individuals, Attorney-General Tommy Thomas said in a statement Friday.

“We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended,” a Goldman Sachs spokesman said by email.

Law enforcement agencies from the U.S. to Singapore are investigating the money trail of billions of dollars that were allegedly siphoned in the 1MDB case. Goldman Sachs, which received some $600 million in fees for the bond sales, has been under close scrutiny. U.S. prosecutors have charged two former bankers at the firm.

The penalties announced today reflect “the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds, the lengthy period over which the offenses were planned and executed,” as well as the breadth of Goldman Sachs units and officers involved in arranging the 1MDB bonds, Thomas said in the statement.

Former senior Goldman Sachs banker Tim Leissner has pleaded guilty to conspiring to launder money and violating the U.S. Foreign Corrupt Practices Act by paying bribes to Malaysia and Abu Dhabi officials and circumventing Goldman’s internal accounting controls.

Prime Minister Mahathir Mohamad has prioritized recouping funds believed to be lost through the troubled state fund, including by seeking about $6.5 billion compensation from Goldman Sachs for its involvement in 1MDB. The premier said the bank had offered 1 billion ringgit ($239 million), which he called “little” compared with the “huge killing” that the bank made from the bond deals.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×