The Goldman Sachs Group, Inc. was a U.S.-based global investment banking, securities, and investment management firm whose common stock was registered with the SEC and traded on the New York Stock Exchange. Goldman operated worldwide primarily through wholly-owned subsidiaries and affiliated entities. Goldman and its subsidiaries and affiliated entities, combined, had approximately 38,000 employees.
Goldman Sachs (Malaysia) Sdn. Bhd. ("Goldman Malaysia") was a wholly-owned subsidiary and agent of Goldman Sachs based in Kuala Lumpur, Malaysia.
1Malaysia Development Berhad (“1MDB”) was a Malaysian state-owned and controlled investment fund created to pursue projects for the economic benefit of Malaysia and its people.
According to the documents in this case, between approximately 2009 and 2014, Goldman Sachs and Goldman Malaysia engaged in a conspiracy to pay more than $1.6 billion in bribes, directly and indirectly, to foreign officials in Malaysia and Abu Dhabi in order to secure Goldman Sachs’ role as an advisor on energy acquisitions, as underwriter on three lucrative bond deals with a total value of $6.5 billion, and a potential role in a highly anticipated and even more lucrative initial public offering for 1MDB’s energy assets. Goldman Sachs and Goldman Malaysia paid bribes of over $1.6 billion to officials at 1MDB, the Malaysian government, and to officials at Abu Dhabi’s state-owned sovereign wealth fund, International Petroleum Investment Company. The bribes were paid out of over $2.7 billion in funds the Goldman Sachs employees misappropriated from the bond offerings underwritten by Goldman Sachs. In all, Goldman Sachs received approximately $606 million in fees on the deals.
On October 22, 2020, the DOJ filed a single count Information in the Eastern District of New York against Goldman Malaysia alleging a conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, Goldman Malaysia entered into a plea agreement with the DOJ. Under the terms of the settlement, Goldman Malaysia agreed to pay a criminal fine of $500,000, which was part of over $2.9 billion in penalties Goldman Sachs agreed to pay in a deferred prosecution agreement in its parallel enforcement action brought by the DOJ.
This enforcement action was part of a global settlement that included parallel enforcement actions brought by the DOJ, SEC, and several other domestic and foreign regulators against Goldman Sachs. In all, Goldman Sachs agreed to pay over $3 billion in fines and disgorgement, with approximately $2 billion of that total being paid to various U.S. authorities. The DOJ and SEC also previously brought enforcement actions against former Goldman Sachs executive Tim Leissner, and the DOJ also charged Goldman Sachs employee Ng Chong Hwa and Malaysian national Low Taek Jho.
