New Developments in the 1MBD Scandal

Posted By:
Kreller Group
February 21, 2019

We've written before about Malaysia's 1Malaysia Development Berhad (1MDB) fund and the scandals associated with it. The corruption from the scandal just keeps ensaring more people and organizations through out the world. Recently Tim Leissner, former Goldman Sachs Chairman in Southeast Asia pleaded guilty to money laundering conspiracies in connection with the 1MDB fund. Several other employees were also implicated in that plot.

More recently Goldman Sachs said in a filing with the SEC that some equity based pay awards given to executives and others could be subject to clawbacks depending on the results of futher investigations into 1MDB. Goldman Sachs, which was a major fundraiser for the fund has been charged by Malaysia's attorney general with with helping to "dishonestly misappropriate" money from the fund. Other countries are also investigating the company. The firm has said that it is cooperateing with the "DOJ and all other governmental and regulatory investigations relating to 1MDB."

Don't assume that just becasue a big bank or another sophisticated investor is involved in an investment that it's free from corruption. Corruption can be anywhere. When corrupt activities come to light your investment may dry up. You may even be dragged into ongoing investigations. Don't make a major investment without first conducting professional Due Diligence on your investment. Call Smith Brandon International for a free consultation.

About the Kreller Group

For nearly 30 years, Kreller has relied on “extensive boots-on-the-ground” research, conducted by investigators who are well-versed in worldwide military, law enforcement, business and government matters to deliver the concise information our clients need to make decisions.


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