Skip to main content
//empty //empty

The U.S. Securities and Exchange Commission (SEC) has settled foreign corruption charges against former Goldman Sachs Group Inc executive Tim Leissner for his involvement in Malaysia’s multibillion-dollar 1MDB corruption scandal, the agency said on Monday.

The SEC has permanently barred Leissner from the securities industry for violating the Foreign Corrupt Practices Act (FCPA) by allegedly receiving more than $43 million in illicit payments for helping to facilitate a bribery scheme involving high-ranking government officials in Malaysia and Abu Dhabi.

As part of the settlement, Leissner consented to the SEC’s order that he violated antibribery, internal accounting controls, and books and records provisions of the federal securities laws.

Story continues below advertisement

The settlement also requires Leissner to give up ill-gotten gains of $43.7 million.

That amount will be offset by money paid as part of an action by the U.S. Department of Justice, which in November 2018 filed criminal charges against Leissner and fellow former Goldman banker Roger Ng. Leissner pleaded guilty to those charges. Ng pleaded not guilty, and his case is pending in federal court in Brooklyn.

Goldman has been investigated by regulators in at least 14 countries, including the United States, Malaysia and Singapore, over its involvement in the scandal. According to the Justice Department, the bank earned $600 million in fees for its work with 1MDB. Leissner, Ng and others received large bonuses in connection with that revenue.

The bank has consistently tried to distance itself from the scandal, saying Leissner and Ng worked to conceal their criminal activities from the bank’s management.

Both bankers have already been sanctioned by U.S. Federal Reserve for their roles in the scandal.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies