Two years too light, Johari says on Leissner's 1MDB sentence

Summary

• Tim Leissner’s sentence of two years might send the wrong message to global financial institutions, says 1MDB asset recovery task force chairperson Johari Ghani.

• The sentence is too lenient, he says.

Former Goldman Sachs banker Tim Leissner being hit with a mere two years’ imprisonment might send the wrong message to global financial institutions, 1MDB asset recovery task force chairperson Johari Ghani said.

He said that Leissner’s sentence was too lenient considering the scale and gravity of the role he played in the 1MDB scandal.

“(Leissner’s sentencing) was an opportunity to send a clear and strong global message that white-collar crime will be met with serious consequences.

“Unfortunately, that opportunity has been missed,” Free Malaysia Today quoted him as saying.

“Leissner was one of the masterminds in one of the world’s most serious financial scandals, which resulted in the misappropriation of billions of dollars from 1MDB.

“He played a central role in facilitating this fraud, abusing both his position and the reputation of one of the world’s most prominent financial institutions to carry out this scheme,” Johari (above) added.

‘Brazen and audacious’

Yesterday, a New York court sentenced Leissner to two years in prison for his central role in the 1MDB corruption scandal.

Judge Margo Brodie condemned Leissner’s 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.

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 in connection with 1MDB.

Goldman Sachs played a central role in selling US$6.5 billion (RM27.7 billion) worth of bonds for 1MDB, with the assistance of fugitive financier Low Taek Jho, known as Jho Low.

Misconduct enabler

Commenting further, Johari said Goldman Sachs had a responsibility to sovereign nations, but instead enabled the misconduct that smeared Malaysia’s reputation and left the country with financial damage.

The Malaysian government is still in the middle of a dispute with Goldman Sachs regarding the unresolved US$1.4 billion (RM6 billion) asset recovery guarantee tied to the 2020 settlement agreement, he added.

“This matter is still under arbitration. (Leissner’s light sentence) adds to the public’s frustration and reinforces the perception that powerful individuals can escape with minimal consequences,” he said.

In a letter to the court dated May 21, Goldman Sachs condemned Leissner’s actions, accusing him of deceiving his colleagues for years, resulting in the firm’s first and only criminal case in its 156-year history.

After the scandal broke, Leissner was arrested in 2018 and became a key US government witness.

Following his agreement to cooperate, he was allowed to remain free while assisting prosecutors by providing testimonies against his former colleague, Roger Ng.

Ng, who led Goldman Sachs’ investment banking division in Malaysia, 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 in 2023, he was transferred to Malaysia to aid investigations.

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