NEW YORK (AFP) – A New York jury on Friday convicted a former Goldman Sachs banker for his role in propagating a massive bribery and money laundering scheme involving a state-owned Malaysian investment fund.
The jury found former managing director at Goldman from 2005 to 2014 Roger Ng guilty on all three counts connected to the massive 1MDB bribery scheme, which involved the embezzlement of billions of dollars of funds originally raised by investment bank.
The 1MDB fund was set up to promote the Malaysian economy, but was spectacularly looted in a scandal that roiled the country’s politics and marred Goldman’s reputation.
Ng and his co-conspirators paid more than USD1 billion in bribes to government officials to secure three bond large transactions for Goldman with 1MDB, according to the United States (US) Department of Justice.
The conspirators laundered billions of dollars in funds from 1MDB, including some of the funds from the Goldman transactions.
Some of the money went to luxury items, such as a USD51-million Jean-Michael Basquiat painting and millions of dollars in Hermes handbags, the Justice Department said.
The eight-week trial included testimony from former Goldman partner Timothy Leissner, who has pleaded guilty in the case and testified at length on his role and that of Ng in the scheme.
Attorneys for Ng had argued that Leissner’s testimony should be discounted in light of his plea and that Ng was a pawn in the larger conspiracy.
Ng faces up to a 30-year sentence following his conviction, a department spokesman said.
“Today’s verdict is a victory for not only the rule of law, but also for the people of Malaysia for whom the fund was supposed to help,” US Attorney Breon Peace said.
“With today’s verdict, a powerful message has been delivered to those who commit financial crimes motivated by greed,” Peace said. “You will be caught, prosecuted and convicted, like Ng, and face a long prison sentence.”
The Goldman Sachs bond deals raised USD6.5 billion, yielding the prestigious New York investment bank USD600 million in fees and revenue, while Ng garnered some USD35 million in kickbacks, the Justice Department said.
