NEW YORK, May 6 (Reuters) - A U.S. judge on Monday
formally ended the U.S. government's criminal case against
Goldman Sachs ( GS ) related to the Wall Street bank's work for
the Malaysian fund 1MDB after it met its obligations and paid
$2.9 billion in penalties.
Chief Judge Margo Brodie of the federal court in Brooklyn
dismissed a bribery conspiracy charge against Goldman, after the
bank successfully completed a three-year deferred prosecution
agreement that expired in October.
Goldman did not oppose the dropping of the criminal charge.
The bank helped sell $6.5 billion of bonds for 1MDB, which
former Malaysian Prime Minister Najib Razak set up with the help
of Malaysian financier Jho Low to promote economic development.
U.S. and Malaysian authorities have said $4.5 billion was
siphoned away, with some diverted to offshore bank accounts and
shell companies linked to Low, who is now a fugitive.
Goldman has said 1MDB officials and former Malaysian
government officials lied to it about how bond sale proceeds
would be used.
The bank collected about $600 million in fees, and its
Malaysia unit pleaded guilty to a corruption charge.
Two former Goldman bankers were criminally charged in the
matter.
Tim Leissner, who led Goldman's Southeast Asia business,
pleaded guilty and has yet to be sentenced.
Roger Ng, a former head of investment banking in Malaysia,
was convicted in Brooklyn and sentenced to 10 years in prison,
but transported to Malaysia last October to assist probes there.