Malaysia filed criminal charges Monday against Goldman Sachs and two ex-employees of the bank in an alleged money laundering and corruption scheme tied to a state-owned fund, Reuters reported.
The charges mark the first time that Goldman Sachs has been charged in connection with 1Malaysia Development Berhad (1MDB), the news service noted.
{mosads}Malaysian Attorney General Tommy Thomas told Reuters in a statement that his nation will seek jail time and fines for the individuals it charged, including former Goldman Sachs employees Tim Leissner and Roger Ng.
Goldman Sachs said in a statement to Reuters that the charges were “misdirected,” adding that the bank would defend those who were charged.
Goldman Sachs has faced questions over whether it helped misappropriate billions of dollars from the fund.
Thomas, the Malaysian attorney general, said that ex-1MDB employee Jasmine Loo and financier Jho Low were also charged.
“The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs,” Thomas said in a statement.
Ng, Leissner and Low were also previously charged with money laundering by the Department of Justice.
Thomas said Monday that the four individuals he charged conspired to “bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in the bond issuances,” according to Reuters.