The worldwide scandal over the looting of an enormous Malaysian infrastructure fund almost a decade in the past — against the law that tarnished the repute of one in all Wall Road’s premier banks — is about to play out as soon as once more in a federal courthouse in Brooklyn.
The legal cash laundering and bribery trial of Roger Ng, a former Goldman Sachs banker, will start Monday, with opening arguments and federal prosecutors calling their first witnesses.
The trial comes almost 4 years after Mr. Ng, 49, a Malaysian resident, was indicted by federal prosecutors in Brooklyn. And it comes 16 months after Goldman pleaded guilty to a legal cost and paid $5 billion in fines for its function within the far-reaching international corruption bribery scheme.
Jho Low, the mastermind of the scheme to loot greater than $4 billion from the massive Malaysian fund often known as 1MDB, stays a fugitive and is believed to be dwelling in China. Tim Leissner, the previous Goldman associate who pleaded responsible in the summertime of 2018 and has been cooperating with the federal government, is predicted to be the prosecution’s star witness. He may start testifying as quickly as this week.
Mr. Ng and Mr. Leissner labored collectively at Goldman in Asia. Mr. Ng is alleged to have launched his former associate and others on the financial institution to Mr. Low in 2009. On the time, Mr. Low was a younger and flamboyant businessman who had befriended many Hollywood celebrities. He was identified for throwing lavish Las Vegas events and shopping for up costly properties in Los Angeles and New York.
Prosecutors have charged that the three males and others plotted to pay $1 billion in bribes to high officers in Malaysia and different nations in order that Goldman may organize $6.5 billion in bond choices for 1MDB, a authorities fund that was alleged to pay for initiatives to learn the Malaysian folks. However as an alternative, prosecutors contend, a lot of that cash was diverted to pay for the bribes and to line the pockets of Mr. Low, Mr. Leissner, Mr. Ng and even the previous prime minister of Malaysia.
Cash looted from 1MDB went to purchase a boutique hotel in Beverly Hills, condominium buildings, art work, a mega-yacht, a grand piano made of clear acrylic that was given to a supermodel as a present and a share of the EMI Music Publishing portfolio. A number of the cash even financed the Hollywood film “The Wolf of Wall Road.” A lot of the purchases had been made by Mr. Low.
Mr. Leissner, who’s married to the style designer and mannequin Kimora Lee Simmons, agreed to forfeit as much as $43.7 million as a part of his responsible plea. One in all Goldman’s strongest deal makers in Asia earlier than the scandal erupted in 2016, Mr. Leissner is predicted to seem on the stand for a number of days as soon as he begins testifying. Given his ties to Mr. Ng and Mr. Low, his testimony is seen as essential to the federal government’s case.
However Mr. Leissner is prone to face a fierce cross-examination from Mr. Ng’s authorized protection crew. Attorneys may draw from a file that Goldman had put collectively, presenting Mr. Leissner as a master con artist who had a doctorate from a mail-order diploma mill and had affairs with highly effective girls in Asia, together with a consumer of the agency’s. The financial institution gathered the fabric when it was negotiating its plea take care of prosecutors and financial institution regulators.
In court docket filings, prosecutors have acknowledged that Mr. Leissner was misleading and steadily misled some at Goldman as as to whether he was coping with Mr. Low after being instructed to not. However authorities have faulted Goldman for accepting these denials at “face worth.”
Prosecutors have claimed that Mr. Ng and his household, together with his spouse, bought as much as $35 million in illicit proceeds from the 1MDB bond choices. However Mr. Ng’s protection crew intends to current proof that Mr. Ng was not a vital participant in placing collectively the bond offers and the cash got here from authentic unrelated transactions, in keeping with court docket filings.
His legal professionals are anticipated to argue that Mr. Ng and his household had been owed cash by Mr. Leissner’s former spouse, who owns a big winery in China. Mr. Ng, they’ll contend, was unaware that the cash they obtained got here from proceeds that had been diverted from the 1MDB bond providing.
It isn’t identified if Mr. Ng will testify on his personal behalf.
Goldman Sachs is predicted to have legal professionals monitoring the proceedings. The financial institution’s Malaysian subsidiary pleaded guilty to one count of conspiring to violate the federal Overseas Corrupt Practices Act, and the father or mother firm of the financial institution entered right into a three-year deferred prosecution settlement on the same cost. Quite a few Goldman staff, primarily from its compliance division, are anticipated to be known as as witnesses.
In reaching a take care of prosecutors and regulators, Goldman additionally took steps to recoup or withhold greater than $100 million in government compensation, together with to Lloyd Blankfein, the previous chief government.
The financial institution additionally slashed $10 million from the 2020 pay package deal for David Solomon, who changed Mr. Blankfein as chief government officer, within the wake of the responsible plea. However Goldman made up for many of that misplaced floor by just lately approving $35 million in compensation for Mr. Solomon for 2021 — roughly $8 million greater than the $27.5 million he was alleged to have gotten in 2021.
https://www.nytimes.com/2022/02/13/enterprise/1mdb-trial-roger-ng.html 1MDB Trial Set to Start for Ex-Goldman Banker Roger Ngo