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Enforcement Action Dataset

 

Docket or Case Number:    18-cr-00538

Court:    E.D. New York

Initiation Date:    10/03/2018  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Richard P. Donoghue, United States Attorney
  • Deborah L. Connor, Chief, Money Laundering and Asset Recovery Section, Criminal Division
  • Sandra L. Moser, Acting Chief, Fraud Section, Criminal Division
  • Drew Godfrey Rolle, Assistant United States Attorney
  • Jacquelyn M. Kasulis, Assistant United States Attorney

Assisting Agencies:    U.S. Securities and Exchange Commission , Federal Bureau of Investigation , Swiss Attorney General's Office , Federal Reserve Board of Governors , Swiss Federal Office of Justice , Singaporean Attorney General's Chambers , Malaysian Attorney General's Chambers , Malaysian Royal Police , Malaysian Anti-Corruption Commission , Singaporean Police Force-Commercial Affairs Division , Luxembourgian Judicial Investigating Authority , Luxembourgian Investigation Department of the Grand-Ducal Police

Type of Action:    DOJ Criminal Proceeding

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

The Goldman Sachs Group, Inc. was a global investment banking, securities, and investment management firm that provided a wide range of financial services to corporations, financial institutions, governments, and individuals.

Low Taek Jho, also known as "Jho Low," ("Low") was a Malaysian national who advised on the creation of the predecessor entity to 1 Malaysia Development Berhad ("1MDB"), Malaysia's state-owned and state-controlled investment development company, and who maintained relationships with several high-ranking 1MDB and Malaysian government officials.

Ng Chong Hwa, also known as "Roger Ng," ("Ng") was a Malaysian national who was employed as a Managing Director by various Goldman Sachs subsidiaries.

According to the documents in this case, between approximately 2009 and 2014, Low, Ng, and other co-conspirators misappropriated and diverted billions of dollars from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions that it executed with Goldman Sachs. According to the allegations, the conspirators sought to bribe government officials in Malaysia, including at 1MDB, and Abu Dhabi to obtain and retain business for Goldman Sachs. The proceeds of the scheme were then laundered through the U.S. financial system by purchasing, among other things, luxury residential real estate in New York City and elsewhere, and artwork from a New York-based auction house, and by funding major Hollywood films. In all, Low, Ng, and their co-conspirators misappropriated more than $2.7 billion, some of which was used for bribes for Malaysian and Abu Dhabi officials, from the $6.5 billion in bonds issued by 1MDB. Goldman Sachs allegedly received approximately $600 million in fees and revenues from the scheme.

On October 3, 2018, the DOJ filed a three count indictment in the Eastern District of New York against Low and Ng alleging conspiracy to violate the anti-bribery and internal controls provisions of the FCPA as well as conspiracy to commit money laundering.

This case is ongoing.

In a related proceeding, on June 7, 2018, the DOJ filed a complaint in the Eastern District of New York against Tim Leissner, the former Southeast Asia Chairman and a Participating Managing Director of Goldman Sachs, alleging conspiracy to violate the anti-bribery and internal controls provisions of the FCPA as well as conspiracy to commit money laundering. On August 28, 2018, the DOJ filed a two count information alleging the same violations. On the same date, Leissner agreed to plead guilty to the charges in the information. At the time of entry into the database, the plea agreement was not available, so its terms are not known. However, the DOJ press release announcing the plea stated that Leissner has been ordered to forfeit $43.7 million. Further, he is scheduled to be sentenced on January 17, 2019.

Country(ies) involved:    Malaysia, United Arab Emirates

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Number of Related Enforcement Actions (Including This Enforcement Action):    2

Country(ies) involved:    Malaysia, United Arab Emirates

Total $ Bribery Payments:    $2,700,000,000

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Monetary Sanctions:    $43,700,000

Sanction to Bribe Ratio:    $43,700,000 / $2,700,000,000 = (1.62 %)

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Name:    Low Taek Jho

Employers & Positions:   

Country:    Malaysia

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853)

Statutory Basis for FCPA Jurisdiction:    Issuer (Employee) ; Issuer (Agent) ; Conspirator ; Foreign Nationals and Entities


Name:    Ng Chong Hwa

Employers & Positions:    The Goldman Sachs Group, Inc. - Managing Director at Unnamed Subsidiary

Country:    Malaysia

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Internal Controls, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853)

Statutory Basis for FCPA Jurisdiction:    Issuer (Employee) ; Issuer (Agent) ; Conspirator ; Foreign Nationals and Entities

Period of Bribery:   2012 - 2014

Total Bribery Payments:    $2,700,000,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Malaysia, United Arab Emirates

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, High-ranking Official; Abu Dhabi government investment fund
  • Name Unknown, Officials; 1MDB
  • Name Unknown, Officials; Malaysian government
  • Name Unknown, Officials; Abu Dhabi government
  • Name Unknown, High-ranking Official; Malaysian government

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third-Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Project Magnolia

Period of Bribery:   2012 – 2012

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Malaysia, United Arab Emirates

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, High-ranking Official; Malaysian government;
  • Name Unknown, High-ranking Official; Abu Dhabi government investment fund;
  • Name Unknown, Officials; 1MDB;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Project Maximus

Period of Bribery:   2012 – 2012

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Malaysia, United Arab Emirates

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, Officials; Malaysian government;
  • Name Unknown, Officials; Abu Dhabi government;
  • Name Unknown, Officials; 1MDB;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Project Catalyze

Period of Bribery:   2012 – 2014

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Malaysia

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, High-ranking Official; Malaysian government;
  • Name Unknown, Officials; 1MDB;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

Not Applicable

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Low Taek Jho  
Ng Chong Hwa  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Low Taek Jho  
Ng Chong Hwa  

Total Monetary Sanctions for the Action:    $0

Case Status:    Ongoing


Disposition:    Undetermined

Date of Disposition:    Undetermined

Low Taek Jho

—  Total Monetary Sanctions for Defendant:    $

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None


Ng Chong Hwa

—  Total Monetary Sanctions for Defendant:    $

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

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