By CultureBanx Team
- Kimora Lee Simmons current husband Tim Leissner to forfeit $43.7M
- Ex- Goldman Sachs banker Leissner plead guilty to money laundering
Hip hop’s original first lady Kimora Lee Simmons current husband Tim Leissner has plead guilty to money laundering, after the theft of billions of dollars from 1MDB, a Malaysian sovereign wealth fund. Leissner is a former Goldman Sachs (GS +1.20%) partner in Asia and has agreed to forfeit $43.7 million.
Why This Matters: High finance and hip hop fashion royalty have collided on U.S. prosecutors desks. Leissner didn’t act alone in the scheme that has now put one of the world’s most formidable financial institutions right in the nucleus of what may be the biggest bank fraud in history. He was subpoenaed by the U.S. Justice Department on charges of conspiracy to violate the Foreign Corrupt Practices Act, a federal law targeting official bribery abroad.
Once the charges were initially filed in 2017, Kimora spoke out and said she and her husband’s finances aren’t connected when it comes to her business endeavors.
The two other people involved include Roger Ng, who is also a former Goldman employee and Malaysian businessman Jho Low. Around $4.5 billion was incorrectly managed from 1MDB fund officials and their associates, which include Leissner and his accomplices between 2009 and 2014, the DOJ has alleged. Court documents highlight more than $200 million alone went to Leissner and another alleged co-conspirator.
Just like a scene from a rap video, prosecutors said Leissner, Low and Ng used the funds for personal benefits, including buying luxury U.S. properties and yachts, along with art as well as paying bribes. Allegedly, the three men laundered the fraudulent proceeds through U.S. banks.
Once the charges were initially filed in 2017, Kimora spoke out and said she and her husband’s finances aren’t connected when it comes to her business endeavors, according to WWD. At the climax of Leissner’s involvement with 1MDB, The Wall Street Journal reported he earned more than $10 million a year.
What’s Next: Goldman denies any wrongdoing, though investigators claim the bank made around $600 million in fees for its work with 1MDB. Leissner is scheduled to be sentenced in January, Ng was arrested in Malaysia last week, and Low is currently on the run.
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