In a significant ruling, Tim Leissner, a former banker at Goldman Sachs, has been sentenced to two years in federal prison for his involvement in a staggering $4.5 billion embezzlement scheme related to Malaysia’s state investment fund, 1MDB.
Leissner’s sentencing took place in a Brooklyn federal court, where he publicly expressed remorse for the actions he took part in over a decade ago.
“The funds raised more than a decade ago could have profoundly benefited the nation and its citizens,” he stated, acknowledging the impact of the misappropriation on the Malaysian people, whom he labeled as the “real victims” of the scheme.
Alongside Leissner, other Goldman Sachs bankers facilitated the Malaysian fund’s efforts to raise $6.5 billion through bond sales.
Tragically, more than $4.5 billion of the raised capital was diverted into corrupt practices, including bribes and kickbacks.
The misappropriated funds funded opulent expenditures such as extravagant parties, luxurious jewelry, high-end art, and a superyacht, in addition to financing the 2013 Martin Scorsese film “The Wolf of Wall Street,” starring Leonardo DiCaprio.
The repercussions of the scandal were substantial, contributing to the downfall of former Malaysian Prime Minister Najib Razak’s government in 2018.
Razak later faced conviction and received a 12-year prison sentence on various charges tied to the scandal, including abuse of power.
During his sentencing, Leissner took full responsibility for his actions, expressing regret for his participation.
“What we did was unequivocally wrong, and I take full responsibility for my role,” he said.
He emphasized that given the chance, he would turn back time to undo his actions without hesitation.
Leissner had previously pleaded guilty in 2018 to accusations of bribing officials in both Malaysia and Abu Dhabi.
In this case, he served as a key witness for the prosecution during the trial of another ex-Goldman Sachs banker, Roger Ng, who was sentenced to ten years in federal prison in 2023.
Despite claiming that the 1MDB scandal is potentially “the single largest heist in the history of the world,” Ng’s legal team argued that prosecutors unfairly targeted him for the actions of others, particularly those of the higher-ranking Leissner.
While prosecutors did not seek a specific prison sentence, Leissner’s lawyers requested a term of time already served.
He is scheduled to report to prison on September 15 and has requested to be housed at the federal prison in Otisville, New York.
Leissner’s lawyer, Henry Mazurek, indicated that his client is prepared to face his sentence, which also includes two years of supervised release and a forfeiture of $43.7 million, already paid to Malaysia by Leissner.
Mazurek stated, “Mr. Leissner cooperated not only to obtain leniency at sentencing but to show his true remorse for his actions and tell the full story of 1MDB and Goldman Sachs.”
He concluded by asserting that Leissner would continue to speak out about the detrimental culture at Goldman Sachs that contributed to the 1MDB scandal.
image source from：https://www.nbcnews.com/world/asia/ex-goldman-sachs-banker-gets-2-years-prison-1mdb-malaysia-rcna209899
