Goldman Malaysia Unit’s Sentencing to Trigger Bank’s Payment
(Bloomberg) -- Goldman Sachs Group Inc. will have 10 days to pay the remaining $1.26 billion of a $2.3 billion penalty for its role in the 1MDB fraud scheme after its Malaysia unit is sentenced on Wednesday, according to a court filing.
Goldman Sachs entered into a deferred prosecution agreement with the U.S. Justice Department last year. On Wednesday, U.S. District Judge Margo Brodie in Brooklyn, New York, is expected to sentence the bank’s Malaysia unit to pay $500,000 in the case. The sentencing of the Malaysia unit will trigger the larger payment by the New York-based bank.
Goldman and its Malaysian unit admitted conspiring to engage in a five-year scheme to violate a U.S. anti-bribery law. The U.S. said Goldman reaped more than $600 million in fees while making illicit payments to officials in Malaysia and Abu Dhabi to get and retain business for the bank from the Malaysian state-owned fund 1MDB.
The agreement allows the bank to defer prosecution as long as it continues to cooperate with the U.S. and submits compliance reports. Goldman said when the accord was announced that it was pleased to be putting the matter behind it to resolve the government and regulatory investigations.
Details of the 10-day deadline for Goldman to make the payment came in a June 4 filing by the government in federal court in Brooklyn.
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