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Ex-Goldman Sachs banker subpoenaed in US probe on 1MDB
Published:  Mar 8, 2016 11:57 AM
Updated: 3:59 AM

A former Goldman Sachs banker was subpoenaed to facilitate investigations into 1MDB by the US' Federal Bureau of Investigation (FBI).

According to a Bloomberg report, Tim Leissner, who served as Goldman Sachs's chairperson of South East Asia operations, was issued with a subpoena in late February shortly after Goldman Sachs confirmed his departure from the firm.

The report quoted three people who were briefed on the matter.

"Prosecutors in the Justice Department’s kleptocracy asset-recovery unit are investigating whether funds were embezzled from 1MDB by politically-connected individuals in Malaysia, the people said.

"The FBI's New York office is leading the investigation and is trying to determine if any US laws were broken, according to one of the people briefed on the subpoena issued to Leissner," added the report.

Leissner's attorney did not respond to Bloomberg while the US Justice Department, FBI New York office and Goldman Sachs declined to comment.

Leissner is known as a key figure in helping 1MDB raise US$6.5 billion at a charge of US$593 million in fees, well above industry norms.

Investigations into 1MDB and companies linked to it are also ongoing in the Switzerland, Singapore, Hong Kong, UK and Malaysia.

1MDB, formerly Terengganu Investment Authority, was the brainchild of Prime Minister Najib Abdul Razak who also acts as its advisor.

The Malaysian Anti-Corruption Commission (MACC) had investigated deposits of RM2.6 billion from an offshore account and RM42 million from state-owned SRC International into Najib's personal bank accounts.

The Wall Street Journal claimed the RM2.6 billion was from entities linked to 1MDB but Najib claimed the money was a political donation from the Middle East.

Malaysian attorney-general Mohamed Apandi Ali has since cleared the premier of any wrongdoing.

As for the RM42 million, Apandi claimed Najib had no knowledge that the money went into his personal bank accounts in clearing the prime minister.

Najib has consistently denied abusing public funds for personal gain.

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