NEW YORK: Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison by a judge in a New York court on Thursday after playing a key role in a multi-billion dollar scandal involving Malaysia’s sovereign fund 1MDB.
Malaysian and U.S. authorities estimated $4.5 billion was stolen from 1MDB in an elaborate scheme that spanned the globe and implicated high-level officials in the fund, former Malaysian Prime Minister Najib Razak, Goldman executives and others.
Leissner, a former Southeast Asia chairman for Goldman, pleaded guilty in 2018 to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, all tied to his role in the 1MDB scandal.
Leissner’s conduct was “brazen and audacious,” judge Margo Brodie said during sentencing. While his cooperation with the government was taken into account, it did not make up for the harm caused by the corruption at the highest levels in several countries, the judge said.
“First and foremost, I offer my sincere apology to the people of Malaysia,” Leissner, 55, told the hearing, his voice breaking as he read a statement. “I deeply regret my actions.”
Goldman helped sell $6.5 billion of bonds for 1MDB, which former Malaysian Prime Minister Najib set up with the help of Low to promote economic development.
Some of the funds were diverted to offshore bank accounts and shell companies linked to Malaysian financier Jho Low, who is now a fugitive.
Leissner became a U.S. government witness in the case after his arrest in 2018.
He was allowed to remain free after he agreed to help the government in the investigation and testified against former banking colleague Roger Ng.
Ng has pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law.
The former head of investment banking for Goldman in Malaysia was convicted in Brooklyn and sentenced to 10 years in prison, but transported to Malaysia in 2023 to assist probes there.
Leissner met with the government on dozens of occasions, reviewing countless documents and communications he received related to the 1MDB scheme and other matters, according to a filing by prosecutors.
“We respect the court’s decision today and Mr. Leissner is prepared to serve his sentence and continue his future life of good works and care for his family,” said his lawyer Henry Mazurek, a partner at Meister Seelig & Fein PLLC.
Prosecutors requested the court impose a sentence below the applicable guidelines range due to Leissner’s cooperation in the probe.
ONLY CRIMINAL CASE AGAINST GOLDMAN
Leissner told the court that he had lost his freedom, family and financial independence in the wake of the scandal. The former executive said his health also suffered, and that he took pills and lost the will to live.
Goldman said in a letter to the court on May 21 that Leissner deceived his colleagues for years, culminating in the only criminal case filed against Goldman in its 156-year history.
Goldman in 2020 paid a record $2.9 billion fine in the United States and arranged for its Malaysian unit to plead guilty in U.S. court. It also clawed back $174 million in executive compensation.
Malaysia’s former prime minister Najib was found guilty in 2020 of criminal breach of trust and abuse of power for illegally receiving funds misappropriated from a unit of state investor 1Malaysia Development Berhad.
Malaysia’s top court in 2022 upheld a guilty verdict against Najib, sentencing him to 12 years in prison. The sentence was later halved by a pardons board chaired by Malaysia’s former king.
The former premier is currently in prison and is pursuing a legal bid to compel authorities to entitle him to serve the remainder of his sentence at home.
