Two former Goldman Sachs bankers and Malaysian financier Jho Low have been hit with US criminal charges in connection with one of the world’s biggest financial scandals.<\/p>\n
The Department of Justice alleges<\/a>\u00a0the men participated in a scheme that stole billions of dollars from Malaysia’s development fund, 1MDB.<\/p>\n One former Goldman banker pleaded guilty, the department said.<\/p>\n The other banker has been arrested, while Mr Low remains at large.<\/p>\n Mr Low, who prosecutors say had ties to government officials and acted as an informal advisor to the 1MDB fund, maintains his innocence, according to a statement issued by his legal team.<\/p>\n He has previously denied charges filed in Malaysia, adding that it would be “impossible” for him to receive a fair trial there.<\/p>\n “Mr. Low simply asks that the public keep an open mind regarding this case until all of the evidence comes to light, which he believes will vindicate him,” the statement said.<\/p>\n Goldman, which worked to raise money for the 1MDB fund, said on Thursday that it “continues to co-operate with all authorities investigating this matter”.<\/p>\n These are the first US criminal charges to surface in the 1MDB scandal. Authorities say billions of dollars were embezzled from the state fund to buy art, property, a private jet – and even to help finance the Wolf of Wall Street film starring Leonardo DiCaprio.<\/p>\n The scandal has prompted investigations around the world and played a role in the election defeat earlier this year of Malaysia’s former prime minister, Najib Razak, who is accused of pocketing $700m (\u00a3517m) from the fund he set up.<\/p>\n He has since been charged with corruption, abuse of power and criminal breach of trust in Malaysia<\/a>. His wife, Rosmah Mansor, has been charged with money laundering. Both deny any wrongdoing.<\/p>\n US authorities have previously filed civil suits<\/a>\u00a0aimed at recovering luxury goods, cash and other items allegedly purchased with money from the fund.<\/p>\n In this case, prosecutors say former Goldman bankers Tim Leissner and Roger Ng worked with Mr Low to bribe government officials to win 1MDB business for Goldman Sachs.<\/p>\n Goldman had previously rejected Mr Low as a client, after compliance officials raised concerns about the source of his money.<\/p>\n But in this case, the bankers, along with others at Goldman, worked to conceal Mr Low’s involvement, prosecutors say.<\/p>\n Ultimately, the bankers worked on three bond offerings in 2012 and 2013 that raised about $6.5bn for the fund and earned Goldman $600m, the indictment says.<\/p>\n The money was supposed to support development projects, but prosecutors say the three men “conspired to launder” more than $2.7bn through the US financial system.<\/p>\n They allegedly used this money to pay bribes and “for the personal benefit of themselves and their relatives”.<\/p>\n Mr Low, who was charged earlier in Malaysia, has repeatedly declared his innocence.<\/a>\u00a0He has called the Malaysian charges political.<\/p>\n Mr Leissner, who served as Goldman’s South East Asia chairman and a participating managing director, has pleaded guilty to conspiring to launder money and violate US anti-bribery laws.<\/p>\n Mr Leissner, who left Goldman in February 2016, has been ordered to forfeit $43.7m.<\/p>\n Mr Ng was a managing director at Goldman until his departure in May 2014. He was arrested in Malaysia on Thursday. The BBC has not yet been able to contact a lawyer representing him.<\/p>\n Source: bbc.co.uk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"How did we get here?<\/h2>\n
What are the new charges?<\/h2>\n
How have the men responded?<\/h2>\n