Ex-Goldman partner to testify against former colleague in 1MDB corruption trial

Ex-Goldman Sachs banker Roger Ng exits after the primary day of his legal trial, at the US Courthouse in Brooklyn, New York, U.S., February 14, 2022. REUTERS/Brendan McDermid

NEW YORK, Feb 16 (Reuters) – Two former Goldman Sachs (GS.N) colleagues will face off in a Brooklyn courtroom on Wednesday in a trial over the looting of tons of of hundreds of thousands of {dollars} from Malaysia’s 1MDB sovereign wealth fund, one of many greatest scandals in Wall Avenue historical past.

Roger Ng, Goldman’s former head of funding banking in Malaysia, is charged with conspiring to launder cash and to violate an anti-bribery regulation. Prosecutors mentioned in opening statements at his trial on Monday in Brooklyn federal courtroom that Ng, 49, obtained hundreds of thousands in kickbacks for serving to embezzle funds from 1MDB. learn extra

On Wednesday, prosecutors will name their star witness: Tim Leissner, a former Goldman companion and Ng’s former boss on the financial institution’s Southeast Asia operation. Leissner, 52, in 2018 pleaded responsible to cash laundering and bribery prices and agreed to cooperate with the federal government’s investigation.

Ng has pleaded not responsible and his protection lawyer, Marc Agnifilo, mentioned in his opening assertion that Ng had no position within the scheme allegedly perpetrated by Leissner and Jho Low, a Malaysian financier who served as an middleman for offers through which Goldman helped 1MDB promote $6.5 billion in bonds.

Low, the accused mastermind behind the scheme, was indicted in the US alongside Ng in 2018. He has not been arrested by U.S. or Malaysian authorities. Low’s U.S. lawyer didn’t reply to a request for remark.

U.S. prosecutors say Goldman earned $600 million in charges from the offers, and that round $4.5 billion of the funds raised was embezzled. Goldman paid an almost $3 billion fantastic and organized for its Malaysian subsidiary to plead responsible in U.S. courtroom.

Leissner will probably be questioned by the federal government about Ng’s alleged involvement in a scheme to embezzle a few of these funds, use a few of them to bribe officers to win enterprise for Goldman, and maintain some for themselves. Prosecutors have mentioned Leissner’s testimony will likely be backed up by different proof.

“He’ll offer you an inside view of this bribery and cash laundering scheme,” prosecutor Brent Wible mentioned in courtroom on Monday.

Agnifilo has countered that Leissner, who has not but been sentenced, has lied to prosecutors about Ng’s involvement in a bid to lighten his punishment. He spent a lot of his opening assertion attacking Leissner’s credibility, portraying him as a socialite who stole to finance a lavish life-style.

Leissner’s testimony was anticipated to begin at 9:30 EST (1430 GMT). A lawyer for Leissner didn’t instantly reply to a request for remark.

Reporting by Luc Cohen in New York; modifying by Megan Davies and Aurora Ellis

: The Thomson Reuters Trust Principles.