New York: Global Financial Title Goldman Sachs Agreed to pay $ 2.9 billion in penalties to settle criminal charges 1MDB Malaysian bribery scandal, largest US crime case ever, Justice Department Announced Thursday.
Acting US Assistant Attorney General Brian C. Rabbitt said Goldman referred to the “accepted responsibility” in the case, including $ 1.6 billion in bribes, the largest record ever, and profited largely through the US financial system is.
Goldman Sachs helped raise $ 6.5 billion for the Malaysian government’s sovereign wealth fund. The US Department of Justice states that more than $ 4.5 billion was stolen from 1MDB between 2009 and 2015 by high-level officials of the fund and their partners.
Rabit said in a press talk that the investment fund was looted by corrupt officials and their co-conspirators, with senior Goldman bankers turning it into a piggy bank for corrupt public officials and their allies.
In a first for Goldman Sachs, the company’s Malaysian entity pleaded guilty Thursday in US court to violations of US bribery law, with officials from nine countries as part of a deal to end criminal investigations into broader cases Were included.
The guilty plea may prohibit Goldman Sachs Malaysia’s activities, but allows the parent company to refrain from wrongdoing in court – thereby damaging its ability to trade.
The parent company pleaded not guilty in US court and agreed to “defer prosecution” for three-and-a-half years, during which the firm would face increased oversight by regulators.
But Rabbitt insisted that despite the deal, the company has been accused of bribery scandals, “therefore causing a significant amount of criminal liability for Goldman” and as a “meaningful result”.
The Justice Department has charged three individuals, including two former Goldman officers, in the case. South East Asia president Tim Lissner has pleaded guilty, while Ng Chong Hwa, former head of investment banking for GS Malaysia, also known as “Roger Ng”, awaits trial, and Lo Taek Jo Remains a fugitive.
“Goldman today admitted that Leisener, NG, Employee 1 and others conspired with Lo Taek Zhao to influence the plan” and ignored the red flags, the statement said.
In another surprising twist, the company said it would seek repayment of $ 174 million in salaries and bonuses paid to current and former executives, including the chief executive. David solomon And his predecessor Lloyd Blankefin.
These so-called lines are almost unheard of in corporate affairs.
“It is fairly clear that some former employees broke the law, lied to our colleagues and sidelined firm controls,” Solomon said in a statement, adding, “We believe we have adequately Did not address the red flag. ”
Included in the total penalty amount, Goldman would pay the SEC a fine of $ 400 and earnings of $ 600 million, and a $ 154 million fine to the Federal Reserve, which also required the company to improve its risk management and internal oversight Will be.
The government of Malaysia dropped charges against Goldman in July after a $ 3.9 billion settlement with the financial giant.
The firm, which posted a profit of $ 3.5 billion in the latest quarter, had paid more than $ 3.1 billion as of September 30. “For Litigation and Regulatory Proceedings.”
Goldman shares closed up US trading 1.2 percent after uncertainty settled.