Topline
Ex-Goldman Sachs director Roger Ng was convicted Friday on charges of money laundering and bribery for his role in the multi-billion-dollar looting of the Malaysian state fund 1MDB, one of the largest financial scandals in recent history.
Ng was convicted on bribery and money laundering charges after a nearly two-month trial in the 1MDB … [+]
Key Facts
After several days of deliberation following a nearly two-month trial, a New York federal jury found Ng, 49, guilty of all three charges against him, including bribing Malaysian and United Arab Emirates officials, as well as violating Goldman Sachs’ internal accounting controls.
Ng, who worked at Goldman from 2005–14, now faces up to 30 years in prison for helping ransack over $4 billion from the Malaysian 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 conviction likely to be seen by regulators as a landmark win after years were spent building a case.
Prosecutors said Ng took $35 million in secret kickbacks while helping loot the Malaysian state fund, while his accomplices also pocketed money.
Testifying in February, when his trial started, the former Goldman banker said “greed and ambition” were behind his involvement in the bribery scheme, with his own lawyers even calling it “perhaps the single largest heist in the history of the world.”
Crucial Quote:
“With today’s verdict, a powerful message has been delivered to those who commit financial crimes motivated by greed,” U.S. attorney Breon Peace said in a statement. “You will be caught, prosecuted and convicted, like Ng, and face a long prison sentence.”
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 to other countries, including Malaysia. “It is not always possible to deter or prevent employee misconduct and the precautions we take to prevent and detect this activity have not been and may not be effective in all cases, as reflected by the settlements relating to 1MDB,” the firm wrote in its 2018 annual report.
What To Watch For:
Ng’s former boss, Tim Leissner, as well as notorious Malaysian financier Jho Low, have both similarly been charged by the U.S. Department of Justice. While Leissner has already pleaded guilty and awaits sentencing, Low denies any wrongdoing and remains a fugitive. He’s believed to be living in China.
Further Reading:
Federal Reserve Hints At Bigger Rate Hikes Ahead, Outlines Plan To Shrink Balance Sheet (Forbes)
More Fed Officials Are Sounding The Alarm On Inflation And Spooking Markets (Forbes)
Major Bank Is First To Forecast A Recession—More Could Follow (Forbes)
Source: https://www.forbes.com/sites/sergeiklebnikov/2022/04/08/former-goldman-banker-roger-ng-found-guilty-of-looting-billions-from-malaysian-state-fund/