By CultureBanx Team
- Goldman Sachs agreed to pay the Malaysian government $3.1B, to settle claims in the 1MDB fund
- Kimora Lee’s Simmons husband Tim Leissner, a former Goldman Sachs partner in Asia already pleaded guilty and agreed to forfeit $43.7M in 2018
High finance and hip hop fashion royalty have collided, making Goldman Sachs (GS %) cash reserves a little lighter after agreeing to pay the Malaysian government $3.1 billion, to settle claims in the 1Malaysia Development Berhad (1MDB) fund. 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. Leissner had already pleaded guilty and agreed to forfeit $43.7 million in 2018. The bank’s settlement is the largest reached so far in the scandal.
Why This Matters: Let’s remember these charges all started in 2017, because at least one of its 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. Goldman initially claimed the charges were “misdirected” and would be “vigorously defended.” Now, the Wall Street bank will pay the Malaysian government $2.5 billion, and provide a guarantee that it also receives “at least $1.4 billion in proceeds from assets related to 1MDB seized by governmental authorities around the world,” according to a statement from the frm.
Leissner and Roger NG, along with Low used the funds to buy luxury U.S. properties and yachts, along with art, as well as paying bribes and movies like the Wolf of Wall Street
Leissner didn’t act alone in the scheme that may be the biggest bank fraud in history. Just like a scene from a rap video, prosecutors said ex-Goldman employees Leissner and NG, along with Low used the funds to buy luxury U.S. properties and yachts, along with art, as well as paying bribes and movies like the Wolf of Wall Street. Allegedly, they laundered the fraudulent proceeds through U.S. banks. Earlier this year Goldman set aside $1.09 billion to settle allegations with the Department of Justice for its part in arranging $6.5 billion in loans for 1MDB.
What’s Next: 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. Court documents highlight more than $200 million alone went to Leissner and another alleged co-conspirator. The bank still faces possible charges in the U.S. related to the deal, which American prosecutors say earned the firm about $600 million, which will most likely further weigh on earnings.
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