In a recent set of events, the US Federal Reserve, as per reports, has barred two former Goldman Sachs staff from the banking industry for their alleged participation in a Ponzi scheme, diverting billions of dollars from a Malaysian sovereign wealth fund, 1Malaysia Development Berhad (1MDB), illegally for personal benefits and to bribe certain high ranking government officials in Malaysia and Abu Dhabi.
Two former senior investment bankers, Tim Leissner and Ng Chong Hwa, aka Roger Ng, were employees at Goldman Sachs owned foreign subsidiaries, who also coordinated bond offerings arranged by Goldman Sachs for 1Malaysia Development Berhad (1MDB), earlier in 2012 and 2013.
Last year, in Aug. 2018, Leissner pleaded guilty to all criminal charges brought by the United States Department of Justice in the Eastern District of New York for conspiracy and violation of the Foreign Corrupt Practices Act, for money laundering. He was then slapped, a fine amount of $1.42 million and the permanent ban from the banking industry. Roger Ng too was indicted in last year, in Oct. 2018 on similar charges.
The Federal Reserve’s act of barring both senior investment bankers follows the Dec. 2018 criminal charges against Goldman Sachs in Malaysia for misappropriation offense of $2.7 billion from the proceeds of three bonds issued by 1MDB subsidiaries.