US Securities Commission Bans Tim Leissner And Names Najib Razak For Receiving Bribes

Sarawak Report has sighted details of the US Securities Commission ‘Cease & Desist Order’ issued on Monday 16th December against former Goldman Sacks South East Asia boss, Tim Leissner. The order states that Leissner has submitted to the decisions of the commission, which has banned him from holding any position relating to finance in the United States.

“This matter relates to a massive corruption scheme perpetrated by Leissner while acting as a senior executive of The Goldman Sachs Group, Inc. (“Goldman Sachs” or the “Company”). Leissner, in coordination with other Goldman Sachs senior executives, authorized and paid bribes and kickbacks to government officials in Malaysia and the Emirate of Abu Dhabi (“Abu Dhabi”) in order to secure lucrative business for Goldman Sachs. Leissner’s actions resulted in violations of the antibribery, books and records and circumvention of internal accounting controls provisions of the Foreign Corrupt Practices Act (“FCP A”)….. … Throughout 2012 and 2013, Leissner and other senior executives of Goldman Sachs actively worked to obtain and retain business from 1MDB for the benefit of Goldman Sachs through the promise and payment of bribes and kickbacks to government officials in Malaysia and Abu Dhabi using, in part, misappropriated and embezzled proceeds from the bond deals. During this time, through the course of the scheme, Leissner and others paid millions of dollars in bribes and kickbacks to government officials, and obtained 1MDB business for Goldman Sachs, in particular, the three bond deals. These three bond financing transactions were referred to internally at Goldman Sachs as “Project Magnolia,” “Project Maximus” and “Project Catalyze.”

Notably, the 13 page order specifically names the former Malaysian prime minister on repeated occasions as it details Leissner’s offences under a series of banking regulations, referring on numerous occasions to Najib’s receipt of bribes in return for sanctioning the lucrative bond business with Goldman Sachs.

“Leissner and others instead planned and executed a scheme to misappropriate more than $2.7 billion and distribute the money as bribes and kickbacks to government officials in Malaysia and Abu Dhabi, including but not limited to Najib Razak, as well as to other participants in the scheme and their families, including Leissner…. … Leissner also knew at the time that Najib Razak and government officials from Abu Dhabi and 1MDB officials would receive money from the proceeds of Project Maximus that passed through various shell companies beneficially owned and controlled by himself, Low and others…. A close relative of Najib Razak and a senior official with the Middle Eastern Sovereign Wealth Fund, among others, received some of these funds.

The bribes were paid out of money stolen from those bond issues that went through accounts owned by Jho Low (the key intermediary between 1MDB, Goldman Sachs and the corrupted guarantors at the Abu Dhabi sovereign wealth fund Aabar/IPIC) and Tim Leissner himself, together with another unnamed colleague at Goldman Sachs.

Malaysian banker Roger Ng, who is awaiting trial in the United States is also named as a co-conspirator of Leissner. However the order makes several references to other unnamed senior colleagues at Goldman Sachs, who were also allegedly involved and complicit in the criminal conspiracies to rob a total of $2,5 billion from the three bonds.

“These bribes and kickbacks included transferring millions of dollars to the accounts of shell companies beneficially owned and controlled by 1MDB officials, and transferring approximately $1.3 million to the account of a New York jeweler to pay for jewelry for the spouse of Najib Razak… …. Between in or around June 2012 and October 2014, more than $200 million of the proceeds of the three 1MDB bond deals and other 1MDB business was transferred by Low or at his direction into accounts beneficially owned and controlled by Leissner.”

Goldman Sachs has hired the former law firm of the US Attorney General, Bill Barr, to fight its case against the DOJ in the United States and it is reported that Barr has achieved a waiver on ethics constraints in order to oversee the case. There are reports that a deal has already been brokered that lets the bank off lightly in terms of fines over in the US.

With several big names at this powerful, influence-mongering bank next in the frame over 1MDB the world is watching.

READ THE ORDER