Ex-Goldman Sachs banker apologises to M'sians, gets two years in prison

Summary

• US court jails former Goldman Sachs banker Tim Leissner for two years for his role in the 1MDB scandal.

• Presiding judge condemns his actions as “brazen and audacious”, saying that his cooperation with authorities cannot undo the extensive damage inflicted.

• Leissner expresses remorse and apologises to all Malaysians for his role in the scandal, saying it had cost him his freedom, family, and financial independence.

A New York court has sentenced former Goldman Sachs banker Tim Leissner to two years in prison for his central role in the 1MDB corruption scandal.

Leissner, who expressed remorse and issued an apology to the people of Malaysia, was sharply rebuked by judge Margo Brodie during sentencing on Thursday. 

The judge condemned his actions as “brazen and audacious,” emphasising that while his cooperation with the authorities was acknowledged, it could not undo the extensive damage inflicted by high-level corruption spanning multiple countries.

According to Reuters, the 55-year-old former banker’s voice trembled as he read his statement during the hearing.

“First and foremost, I offer my sincere apology to the people of Malaysia… I deeply regret my actions,” he said.

Leissner told the court that the scandal had cost him his freedom, his family, and his financial independence.

He also revealed that his health deteriorated severely, leading him to rely on medication and grapple with a profound loss of will to live.

‘Leissner deceived colleagues for years’

According to prosecutors’ filings, Leissner met with government officials dozens of times, reviewing countless documents and communications related to the 1MDB scheme and other matters.

Due to his substantial assistance, prosecutors recommended that the court impose a sentence below the standard guidelines.

In a letter to the court dated May 21, Goldman Sachs condemned Leissner’s actions, stating he deceived his colleagues for years, actions that culminated in the firm’s first and only criminal case in its 156-year history.

“We respect the court’s decision today and Leissner is prepared to serve his sentence and continue his future life of good works and care for his family,” said his lawyer, Henry Mazurek.

Leissner, a former Southeast Asia chairperson for Goldman, pleaded guilty in 2018 to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, all tied to his role in the 1MDB scandal.

Goldman Sachs played a central role in selling US$6.5 billion worth of bonds for 1MDB, with the assistance of fugitive financier Low Taek Jho, known as Jho Low.

However, a significant portion of the funds was illicitly diverted to offshore bank accounts and shell companies tied to the Penang-born Low.

In the wake of the scandal, Leissner was arrested in 2018 and subsequently became a key US government witness.

After agreeing to cooperate, Leissner was allowed to remain free while assisting prosecutors by testifying against his former colleague, Roger Ng.

Ng, who headed Goldman’s investment banking division in Malaysia, has pleaded not guilty to charges of money laundering and violating anti-bribery laws.

Ng was convicted in Brooklyn and sentenced to 10 years in prison, but was transferred to Malaysia in 2023 to aid investigations here.

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