Malaysia’s government said Friday it has reached a $3.9 billion settlement with Goldman Sachs in exchange for dropping criminal charges against the bank over bond sales that raised money for the 1MDB sovereign wealth fund, which was looted of billions of dollars in a massive scandal.
KUALA LUMPUR, Malaysia (AP) — Malaysia’s government said Friday it has reached a $3.9 billion settlement with Goldman Sachs in exchange for dropping criminal charges against the bank over bond sales that raised money for the 1MDB sovereign wealth fund, which was looted of billions of dollars in a massive scandal.
Malaysian and U. S. prosecutors had alleged that the bond sales organized by Goldman Sachs provided one of the means for associates of ex-Prime Minister Najib Razak to steal billions over several years from a fund that was ostensibly set up to accelerate Malaysia’s economic development.
Najib is on trial on multiple corruption charges linked to the scandal after his election ouster in May 2018. Goldman and two of its former executives were charged in December that year with alleged breaches of securities laws including misleading investors over the bond sales. Another 17 former and current Goldman executives were also charged last year over alleged roles in the fraud.
