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.
On December 9, 2020, the DOJ filed a superseding indictment against Low and Ng alleging the same counts as the initial indictment. On December 20, 2021, the DOJ filed a second superseding indictment against Low and Ng alleging the same claims. Jury selection for Ng's trial began on Febrary 7, 2022, and after several weeks of trial, the jury found Ng guilty on all three counts on April 8, 2022. On March 9, 2023, the court sentenced Ng to ten years in prison to be followed by two years of supervied release. The court further ordered Ng to forfeit $35,100,000 and to pay a mandatory assessment of $300. On April 5, 2023, Ng notified the court that he was appealing the judgment.
This case against Low is ongoing.
The DOJ announced on October 31, 2019, that it had reached a settlement in a parallel civil forfeiture action against assets acquired by Low. The assets to be forfeited were estimated to be worth more than $700 million.
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. He is scheduled to be sentenced on March 19, 2024.
In a related administrative proceeding settled on December 16, 2019, the SEC ordered Leissner to cease and desist violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. Additionally, under the terms of the settlement, the SEC permanently barred Leissner from the securities industry and ordered him to disgorge $43.7 million, which would be offset by the same amount he was ordered to forfeit in this DOJ action.
