Facing charges that carry a maximum jail term of 10 years and a minimum £100,000 fine in Malaysia are Richard Godde, chief executive of Goldman Sachs International, Michael Evans, president of Alibaba Group Holding Ltd and a former director at Goldman Sachs (Asia) LLC, and Michael Sherwood, former vice-chairman of Goldman Sachs Group.
The charges filed on Friday is part of an investigation into Goldman Sachs’ role in the 1MDB scandal.
The prosecution alleges Goldman and some of its bankers misled investors about the 1MDB bond sales. It says $2.7bn of the money raised was illegally diverted out of the fund. Goldman Sachs raised $6.5bn (£5.4bn) for 1MDB through bond sales.
The state investment fund advisory board was chaired by ex-Prime Minister Najib Razak. The latter is facing trial in another 1MDB-linked case involving a former arm of the firm, the SRC International.
Money from the SRC found its way in Najib’s private banking account, the Court in Kuala Lumpur heard from several witnesses.
Reuters says Friday’s charges were under a section of the Malaysian Capital Markets and Services Act that holds certain senior executives responsible for offences committed by the firm.
It cited attorney-general Tommy Thomas who says, “Custodial sentences and criminal fines will be sought against the accused … given the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds,” Mr Thomas said in a statement.
Goldman Sachs reacted to the charges saying they were misdirected and they will be vigorously defended, saying under Malaysia’s legal process the firm and the individuals were not afforded a chance to be heard prior to the filing.
In total, Malaysia has filed criminal charges against 17 current and former directors at subsidiaries of Goldman Sachs Group Inc.
Here is the list of the 17 individuals and Goldman Sachs subsidiaries;
Goldman Sachs International:
1.Richard John Gnodde
2.Brian Griffiths
3. Michael Sydney Sherwood
4.Robin Antony Vince
5.Claes Ake Gustaf Dahlback
Goldman Sachs (Asia) LLC:
6.Oliver Robert Morgan Bolitho
7.Matthew Thayer Freemont-Smith
8.Frederick Towfigh
9.Archie William Parnell
10.Ronald Suk Bae Lee
11.Richard Mark Campbell-Breeden
12.Keith Leslie Hayes
13.Amol Sagun Naik
14.John Michael Evans
15.Dimitrios Kavvathas
Goldman Sachs (Singapore) Pte:
16.Goh Boon Leng
17.Liow Chang Lee