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Goldman Sachs Sued Abu Dhabi Fund For Its Role In The 1MDB Scam


11/22/2018


Goldman Sachs Sued Abu Dhabi Fund For Its Role In The 1MDB Scam
Banker Goldman Sachs is deeper into scrutiny for its alleged role in the 1MDB embezzlement scandal following the filing of a law suit against the bank by An Abu Dhabi sovereign wealth fund for losses related to the 1MBD scandal.
 
The investment bank was named as a defendant in a summons in New York state court which was filed on Wednesday by the International Petroleum Investment Company, and its subsidiary, Aabar.
 
The fund said in a statement that the a "central role" was played by Goldman Sachs in the incident of IPIC being implicated in the scheme which was designed to launder money away from Malaysia's sovereign wealth fund, 1Malaysia Development Berhad.
 
According to the court filing, Goldman Sachs has been alleged to have conspired along with other parties to provide bribes to former executives of IPIC and Aabar and those being bribed were induced to "misuse the companies' names, networks, and infrastructures to further the criminal schemes and to personally benefit Goldman Sachs" and others, claimed the Abu Dhabi fund and added that. 
 
The claims would be fought in the court, the bank said.
 
"We are in the process of assessing the details of allegations and fully expect to contest the claim vigorously," a Goldman Sachs spokesman said in a statement.
 
Former Goldman Sachs bankers Tim Leissner and Roger Ng, as well as Andrea Vella, who has been placed on leave by Goldman, have been named as the other defendants in the law suit by the IPIC.
 
Goldman's former chairman of Southeast Asia, Leissner, had reportedly pleaded guilty on charges of violating the Foreign Corrupt Practices Act by making payments for bribes for top government officials in Malaysia and Abu Dhabi as well as to have conspired to siphon off money from the 1MBD fund, announced the US Justice Department earlier this month.
 
According to US officials, a large portion of the embezzlement plot was played out by Ng, and Jho Low, who are the Malaysian financier and the US government has also filed charges against them. While Ng had been arrested in Malaysia, Low has been absconding.
 
There have so far been no comments available from both the accused. Low maintains his innocence, and "simply asks that the public keep an open mind regarding this case", a spokesperson for Low had said ealirer.
 
The US government's lawsuits did not name Vella who was the co-head of investment banking in Asia for Goldman and the bank had demoted him last month. His alleged conduct related to the 1MDB case is being probed by Goldman Sachs. There was no immediate comment available from Vella.
 
Three large bond offerings for 1MDB were arranged by Goldman Sachs in 2012 and 2013. According to court documents, about $600 million in fees had been given to Goldman Sachs out of the total bond sale that was able to raise as much as $6.5 billion.
 
But according to the US Justice Department, out of the $6.5 billion that was raised from the bond offerings, certain promoters of the 1MBD funds had stolen away about more than $2.7 billion of the proceeds.
 
(Source:www.economictimes.com)