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Goldman Sachs Subsidiaries Sued For Breaching Securities Laws In Malaysia

The Authorities in Malaysia have filed criminal charges for offences under Securities Laws against subsidiaries of Goldman Sachs investment bank, and its key employees related to the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of 3 bonds issued by subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs. The three bonds were with a total face value of $6.5 billion.

As per the charges, Tim Leissner and Roger Ng Chong Hwa of Goldman Sachs conspired with Jho Low, Jasmine Loo Ai Swan (then General Counsel of 1MDB) and others to bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in the bond issuances. Goldman Sachs benefited by receiving underwriting and arranging fees of approximately $600 million which was several times higher than the prevailing market rates and industry norms.

The prosecutors will seek criminal fines against the accused well in excess of the $2.7 billion misappropriated from the bonds proceeds and $600 million in fees received by Goldman Sachs, and custodial sentences against each of the individual

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