Malaysia Files Criminal Charges Against Goldman Execs in 1MDB 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.
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.
Read more: https://www.bloomberg.com/news/articles/2019-08-09/malaysia-files-criminal-charges-against-goldman-sachs-directors?srnd=premium
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