A significant factor in the 1MDB scandal was how the bond offerings were allegedly used to loot the Malaysian sovereign wealth fund for personal gain. Two of these bond offerings, which were underwritten by Goldman Sachs, raised almost $6 billion dollars, much of which was purloined by individuals who routed proceeds from the offerings to their personal back accounts. Goldman has consistently argued it did nothing wrong in connection with this work.
Now the former head of Goldman Sachs southeast Asia, partner in the firm and lead contact with 1MDB, Tim Leissner, is reportedly in discussions with the Justice Department and will plead guilty to federal charges and cooperate with prosecutors. It is not clear what charges might be brought against Leissner, but one would guess Foreign Corrupt Practices Act charges for bribery and corruption will be high among them.
