Ex-Goldman Banker Leissner Barred by SEC Over 1MDB Fund Scandal
Leissner agreed to $43.7 million in disgorgement as part of his settlement with the Securities and Exchange Commission.
(Bloomberg) -- Ex-Goldman Sachs Group Inc. banker Tim Leissner was permanently barred from the securities industry by U.S. regulators for paying bribes as part of scandal that allegedly led to billions of dollars being pilfered from the Malaysian state fund 1MDB.
Leissner agreed to $43.7 million in disgorgement as part of his settlement with the Securities and Exchange Commission, the agency said in a Monday statement. The disgorgement was “deemed satisfied” by a criminal forfeiture Leissner entered into last year with the Justice Department, indicating he won’t be paying any more money to the SEC.
Beginning in 2012, Leissner used a third-party to bribe government officials in Malaysia and Abu Dhabi to win business for Goldman, including underwriting $6.5 billion in bond offerings, according to the SEC. Leissner personally received more than $43 million in illicit payments for his role in the scheme, the regulator said.
“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,” said Charles Cain, head of the SEC enforcement unit that investigates violations of the Foreign Corrupt Practices Act.
1MDB has become a huge international embezzlement scandal, with massive amounts of cash being diverted to finance projects across the globe and enrich corrupt officials, according to Malaysian and U.S. authorities. Money from the fund was allegedly spent on a super yacht, high-end real estate and the Hollywood movie “The Wolf of Wall Street.” Goldman is under investigation over its ties to the scheme.
In March, the Federal Reserve banned Leissner from the banking industry over similar claims. He pleaded guilty to U.S. criminal charges last year that he conspired to launder money, while admitting to bribing officials in Malaysia.
To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net
To contact the editors responsible for this story: Jesse Westbrook at jwestbrook1@bloomberg.net, Jesse Hamilton
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