Former Goldman banker Roger Ng found guilty of looting billions from Malaysian state funds

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Topline

Former Goldman Sachs head Roger Ng was convicted on Friday of money laundering and bribery charges for his role in the multi-billion dollar loot from Malaysia’s state fund 1MDB, one of the biggest financial scandals in the world. recent history.

Highlights

After days of deliberation following a nearly two-month trial, a federal jury in New York found Ng, 49, guilty of all three charges against him, including bribery of Malaysian and UAE officials, as well as breaching internal accounting controls at Goldman Sachs.

Ng, who worked at Goldman from 2005 to 2014, now faces up to 30 years in prison for helping ransack more than $4 billion from Malaysia’s state fund known as 1MDB between 2012 and 2013.

Prosecutors announcing the verdict called the scheme “massive in its scale” and “brazen in its execution”, with the sentencing likely to be viewed by regulators as a historic victory after years of building a case.

Prosecutors said Ng received $35 million in secret bribes while helping to loot the Malaysian state fund, while his accomplices also pocketed the cash.

Testifying in February, at the start of his trial, the former Goldman banker said “greed and ambition” were behind his involvement in the bribery scheme, with his own lawyers even calling it “can -to be the greatest robbery in the history of the world”.

Crucial quote:

“With today’s verdict, a powerful message has been sent to those who commit financial crimes motivated by greed,” U.S. Attorney Breon Peace said in a statement. statement. “You will be arrested, prosecuted and convicted, like Ng, and face a long prison term.”

Tangent:

Goldman Sachs has agreed to pay $2.3 billion in fines to federal authorities over the 1MDB case, not to mention billions more in settlements with other countries, including Malaysia. “It is not always possible to deter or prevent employee misconduct and the precautions we take to prevent and detect such activity have not been and may not be effective in all cases, as evidenced by regulations pertaining to 1MDB,” the company wrote in its 2018 Annual Report.

To monitor :

Ng’s former boss, Tim Leissner, as well as famous Malaysian financier Jho Low, have both been charged in the same way by the US Department of Justice. While Leissner has already pleaded guilty and awaits sentencing, Low denies any wrongdoing and remains a fugitive. We think he lives in China.

Further reading:

The Federal Reserve hints at bigger rate hikes ahead and lays out a plan to shrink the balance sheet (Forbes)

More and more Fed officials are sounding the inflation alarm and spooking the markets (Forbes)

A major bank is the first to predict a recession, others may follow (Forbes)

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