Goldman Sachs Ex-Hip Hop Banker Costs Firm Another $2.9 Billion

CBx Vibe:Bad Intentions” Money Man

By CultureBanx Team

  • Goldman Sachs fined a record $2.9B to resolve the 1MDB fund bribery scheme
  • Kimora Lee’s Simmons husband Tim Leissner, a former Goldman Sachs partner in Asia, is one of the main people who got the bank involved in this scandal

High finance, hip hop fashion royalty and the Department of Justice have collided with Goldman Sachs (GS -0.18%) being fined a record $2.9 billion to resolve the 1Malaysia Development Berhad (1MDB) fund bribery scheme. One of the main people who got the bank involved in this scandal was Kimora Lee’s Simmons husband Tim Leissner, a former Goldman Sachs partner in Asia. The settlement includes the largest monetary penalty ever assessed under corporate criminal bribery law.

Why This Matters: Of the $2.9 billion penalty, $1.3 billion will go to the DOJ, $606 million to Malaysia, $400 million to the U.S. Securities and Exchange Commission, and $154 million to the Federal Reserve. The rest will be split among foreign financial regulators in the United Kingdom, Hong Kong and Singapore.

Kimora spoke out to WWD and said she and her husband’s finances aren’t connected when it comes to her business endeavors

Let’s remember these charges all started in 2017, because at least one of Goldman’s bankers was aware that Malaysian financier Jho Low was involved in the 1MDB bond deals. The banker in the “know” who the DOJ is referring to is Leissner, who CultureBanx reported married hip hop’s original first lady in December 2013.

When the charges were initially filed in 2017, Kimora spoke out to WWD and said she and her husband’s finances aren’t connected when it comes to her business endeavors.

Leissner has already pleaded guilty in 2018, and agreed to forfeit $43.7 million. Court documents highlight more than $200 million alone went to Leissner and another alleged co-conspirator. Back in July, Goldman reached a $3.9 billion settlement with Malaysian prosecutors. Now the firm has pleaded guilty to violating federal anti-bribery law in a Brooklyn federal court last week.

What’s Next: Goldman will cut $174 million in salaries and bonuses from top leadership, as well as claw back $67 million from former executives. The DOJ agreed to defer prosecution of Goldman for three years while it abides by terms of the settlement.

CBx Vibe:Bad Intentions” Money Man

CONTRIBUTOR

CultureBanx Team

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