Malaysia charges Goldman Sachs directors over 1MDB bond deal
Friday, 09 Aug 20192:29 PM MYT
Commodities stance: Goldman Sachs logo appears above a trading post on the floor of New York Stock Exchange. Goldman analysts believe commodities have now reached a level where they are no longer significantly undervalued relative to their current fundamentals. — AP
KUALA LUMPUR: Malaysia filed criminal charges against 17 current and former directors of Goldman Sachs Group Inc. in a case linked to 1MDB.
The individuals served as directors of three Goldman units that Malaysia has accused of misleading investors when it arranged $6.5 billion of bond sales for 1MDB while allegedly knowing the funds would be misappropriated. The country announced charges against the entities in December, which it has struggled to serve to the respective Goldman units.
Those charged include Goldman Sachs Group Vice-Chairman Richard J. Gnodde, who served as co-chief executive officer at Goldman Sachs International, and Brian Griffiths, once an adviser to former U.K. Prime Minister Margaret Thatcher. John Michael Evans, who retired from the U.S. bank to become president of Alibaba Group Holding Ltd., was also charged.
Malaysia will seek custodial sentences and criminal fines against the individuals, Attorney-General Tommy Thomas said in a statement Friday.
The penalties sought reflect "the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds, the lengthy period over which the offenses were planned and executed,” as well as the breadth of Goldman units and officers involved in arranging the 1MDB bonds.
A spokesman for Goldman couldn’t immediately be reached for comment.
Other Goldman directors charged include Michael Sydney Sherwood, Robin Antony Vince and Claes Ake Gustaf Dahlback from Goldman Sachs International; and Goh Boon Leng and Liow Chang Lee from Goldman Sachs (Singapore) Pte.
Ten Goldman Sachs (Asia) LLC officials were also charged, including Dimitrios Kavvathas, John Michael Evans, Amol Sagun Naik, Keith Leslie Hayes, Richard Mark Campbell-Breeden, Ronald Suk Bae Lee, Archie William Parnell, Frederick Towfigh, Matthew Thayer Freemont-Smith and Oliver Robert Morgan Bolitho. - Bloomberg
Read more at https://www.thestar.com.my/business/business-news/2019/08/09/malaysia-charges-goldman-sachs-directors-over-1mdb-bond-deal#P4y4o4Iut8zOJGh1.99
