SUIT PANS ‘GOLD’
Latest 1MDB fallout
Goldman Sachs’ Malaysian storm isn’t letting up.
The Wall Street bank was accused Wednesday of playing a “central role” in a $6 billion international bribery and corruption scandal that was masterminded by partyboy financier Jho Low, according to a lawsuit filed by an Abu Dhabi investor.
The civil suit alleges Goldman Sachs “conspired” with others to bribe officials in Abu Dhabi and at other investment funds to help back the Malaysian fund known as 1MDB, according to the filing from the International Petroleum Investment Co., the Abu Dhabi investment fund.
The pre-Thanksgiving Day suit amounts to the latest accusation against Goldman in the reputation-damaging scandal.
“Goldman Sachs and others engaged in a massive, international conspiracy to embezzle billions of dollars from 1Malaysia Development Berhad (“1MDB”), Malaysia’s investment development fund, and to launder the proceeds of that theft through New York and elsewhere,” according to the suit, filed in New York State Supreme Court.
The suit casts Goldman in the middle of the giant bribery scandal, and cited that the bank “induced” several IPC employees to manipulate the fund.
About half of the $6 billion that Goldman raised in financing for 1MDB paid for bribes and the glamorous lifestyle of Low — including lavish parties and luxury real estate — and backed the Hollywood production company behind “The Wolf of Wall Street,” according to the criminal federal complaint.
Also named in the suit is Tim Leissner, the former chairman of the bank’s Southeast Asian business, who pleaded guilty earlier this month to federal bribery and corruption charges.
In a statement at a court hearing, Leissner said that he and other Goldman employees had “conspired” to bribe Low in order to win the business, and that his actions were “very much in line” with the culture at the bank.
The IPC is seeking an unspecified amount of damages.
Goldman has previously said the bank was not aware of the behavior of Leissner and another banker, Roger Ng. Ng was arrested earlier this month and is awaiting trial in the US. Low’s whereabouts are unknown.
“We are in the process of assessing the details of allegations and fully expect to contest the claim vigorously,” Goldman spokesman Michael DuVally said.
Meanwhile, IPC said it “will take any and all legal action necessary … to protect its business interests against financial exposure and damages it has suffered as a result of this international conspiracy.”
Malaysia’s finance minister earlier demanded a “full refund” of the $600 million that Goldman had taken in fees for raising the funds.