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Goldman Sachs criminal case over 1MDB formally ends
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Goldman Sachs criminal case over 1MDB formally ends
May 6, 2024 1:37 PM

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.

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