NEW YORK: A former Goldman Sachs partner testified on Wednesday that "greed and ambition" drove his involvement in a bribery scheme that looted billions of dollars from Malaysia's 1MDB sovereign wealth fund.
Tim Leissner, the former chief of Goldman's Southeast Asia operation, is a star witness in the criminal trial of Roger Ng, the bank's former head of investment banking in Malaysia. The trial began on Monday in federal court in Brooklyn.
Prosecutors have accused Ng, 49, of receiving millions of dollars in kickbacks for helping embezzle funds from 1MDB. Ng has pleaded not guilty to conspiring to launder money and to violate an anti-bribery law.
Leissner, 52, in 2018 pleaded guilty to similar charges and agreed to cooperate with the government's investigation.
Leissner said on the stand on Wednesday that Ng was Goldman's lead banker on 1MDB and had cultivated a relationship with Malaysian financier Jho Low starting in 2008, who was the key intermediary between the bank and 1MDB.
Bringing in 1MDB business to Goldman, which ultimately sold $6.5 billion in bonds for the fund and reaped $600 million in fees, "instantaneously made us heroes" within the bank, Leissner said.
"My greed and ambition took over," Leissner said, adding that the fallout from his actions had destroyed his life.
He also said bankers at Goldman were expected to be hired on every one of their clients' deals, and that missing one was considered "unacceptable."
"The main focus for me was whatever it takes to get these transactions done for Goldman Sachs," he said.
Ng's defense lawyer, Marc Agnifilo, said in his opening statement that Ng had no role in the scheme allegedly perpetrated by Leissner and Low.
U.S. prosecutors say $4.5 billion of funds raised from the deals was diverted. The bank in 2020 paid a nearly $3 billion fine and arranged for its Malaysian unit to plead guilty in U.S. court.
Leissner said that at a meeting in London in 2012, Low listed individuals in Malaysia and Abu Dhabi that he said would need to be bribed for a plan to raise $1.75 billion in debt for 1MDB to win approval. An Abu Dhabi-based company was acting as a guarantor for 1MDB on the deal, Leissner said.
That list included Najib Razak, Malaysia's then-prime minister, and Sheikh Mansour, deputy prime minister of the United Arab Emirates, who Low said "wouldn't get out of bed for anything less than $100 million," according to Leissner's testimony.
Najib, who was voted out of office in 2018, is accused by Malaysian authorities of receiving more than $1 billion traceable to 1MDB. Najib, who has appealed a 12-year prison sentence, has consistently denied wrongdoing.
A spokesperson for the UAE Consulate General in New York did not respond to a request for comment.
Prosecutors have acknowledged that Leissner, who has not yet been sentenced, will receive a lighter punishment as a result of his cooperation, but said Leissner's testimony will be backed up by other evidence.
Agnifilo has countered that Leissner lied to prosecutors about Ng's involvement. He spent much of his opening statement attacking Leissner's credibility, portraying him as a socialite who stole to finance a lavish lifestyle.
A lawyer for Leissner declined to comment.
Low, the accused mastermind behind the scheme, was indicted in the United States alongside Ng in 2018. He has not been arrested by U.S. or Malaysian authorities. Low's U.S. lawyer did not respond to a request for comment.
Reuters
Thu Feb 17 2022
Ex-Goldman Sachs banker Roger Ng exits after the first day of his criminal trial, at the United States Courthouse in Brooklyn, New York, U.S., February 14, 2022. - Photo by REUTERS/Brendan McDermid
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.