The Securities and Exchange Commission (SEC) has charged Tim Leissner for engaging in corruption connected to Malaysian government-owned investment fund 1Malaysia Development Berhard (1MDB).
The former Goldman Sachs Group executive reportedly obtained millions of dollars by paying unlawful bribes to various government officials to secure lucrative contracts for the investment bank.
Leissner has agreed to a settlement of the alleged violations of the Foreign Corrupt Practices Act (FCPA) that includes a permanent ban from the securities industry.
Lucrative business
According to the SEC’s order, beginning in 2012, Leissner used a third-party intermediary to bribe high-ranking government officials in Malaysia and the Emirate of Abu Dhabi.
The order said this “enabled Goldman Sachs to obtain lucrative business” from 1MDB.
This includes underwriting $6.5bn (£4.9bn, €5.8bn) in bond offerings.
In December 2018, Malaysian authorities were reportedly seeking $7.5bn in reparations from Goldman Sachs over its dealings with 1MDB.
The US regulator also said Leissner “personally received more than $43m in illicit payments for his role in facilitating the bribe scheme”.
Abused his role
The SEC’s order requires Leissner to pay a penalty of $43.7m.
This figure will be paid in accordance to a separate US Department of Justice forfeiture order made in November 2018.
“Individual conduct lies at the heart of all bribery schemes,” said Charles Cain, chief of the SEC enforcement civision’s FCPA unit.
“Here, Leissner abused his leadership role at Goldman Sachs by engaging in a massive bribery scheme targeting the highest levels of two foreign governments in order to bring in lucrative business to the firm and enrich himself.”
In December 2018, the Monetary Authority of Singapore (MAS) increased the ban against Leissner to a lifetime prohibition order for his role in the stricken Malaysian sovereign wealth fund.
