Goldman Sachs Bank to pay the US almost $2.8 billion for 1MDB Fund scandal

Earlier in Malaysia, 17 employees of the Bank were charged with deliberate deception in transactions with the Fund’s shares.

US Bank Goldman Sachs will pay the US Federal government about $2.8 billion and admit responsibility for its role in the scandal with the withdrawal of several billion dollars from the state-owned Malaysian investment fund 1MDB. This was reported on Tuesday in its electronic version of the newspaper The Wall Street Journal.

According to its sources, the Goldman Sachs subsidiary in Malaysia will plead guilty to this week’s charges. The American Bank will approve an agreement with justice that provides a guilty plea but avoids a trial on this account in the United States. Goldman Sachs, however, agreed to the US Justice Department pay a fine of about $2.2 billion-plus return illegally accrued dividends of nearly $600 million as part of a settlement of claims by the Federal government.

As the newspaper clarifies, Goldman Sachs, as of September 30, set aside $3.2 billion for such costs. The compensation will be included in the Bank’s report for 2020.

The 1MDB fund scandal broke in 2015 when it was reported that it had lost $11 billion. Media reported that at least $4.5 billion was at the disposal of Najib Razak, who was Prime Minister of Malaysia. The investigation did not reveal any evidence of a crime. The investigation resumed after the May 2018 election victory of the opposition led by Mahathir Mohamad. After that, the former Prime Minister was charged with 40 episodes of bribes, money laundering, embezzlement on a large scale, and other offenses. In June of this year, he was sentenced to 12 years in prison and a fine of $49.3 million for economic crimes.

In August last year in Malaysia, 17 employees of the US Bank Goldman Sachs were charged with deliberate deception in transactions with shares owned by the 1MDB Fund. In six countries, including the United States, legal proceedings have begun over the actions of the Fund’s management and Goldman Sachs.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

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