U.S. federal prosecutors are zeroing in on a former Goldman Sachs banker who worked closely on the 1MDB deal.
As per a report from New York Times, U.S. prosecutors are investigating whether Goldman Sachs Group Inc played any role in the 1Malaysia Development Berhad (1MDB) fraud that had ties to one of its former bank employee.
1MDB is at the center of money-laundering investigations across 6 countries including the United States, Singapore and Switzerland wherein an estimated $4.5 billion was misappropriated from it by high-level officials of the fund along with their associates, the U.S. Justice Department.
The NYT has reported citing sources familiar with the probe as saying, the U.S. Department of Justice (DOJ) has given control of the U.S. investigation to federal prosecutors in Brooklyn who are “intensively focused” on Goldman’s role.
Goldman, which generated about $600 million in fees for its work with 1MDB, has repeatedly denied any wrongdoing and said it is fully cooperating with authorities.
Pointing to Goldman’s quarterly filing, the bank’s spokesman Michael DuVally stated, Goldman has received subpoenas and information requests from a number of government bodies and regulators.
As per the NYT report, prosecutors are considering filing criminal charges against Tim Leissner, a former Goldman investment banker, who worked closely with 1MDB.
Leissner’s attorney did not immediately respond to a request for comment.
Justice Department spokeswoman Nicole Navas Oxman declined to comment.