The Malaysian government has charged 17 current and former Goldman Sachs directors for wrongdoings regarding their involvement in the 1MDB scandal.
Malaysia's Attorney-General Tommy Thomas named Richard Gnodde, chief executive of Goldman Sachs International, and Michael Sherwood, vice-chairperson of Goldman Sachs Group Inc and co-chief executive officer of Goldman Sachs international, among those that will face charges.
«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," Thomas said in a statement, reported by «Reuters».
Vigorously Defended
In response, a spokesperson for the bank noted that the entities and employees «will be vigorously defended» against charges made by Malaysian authorities. «We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended,» a spokesperson said.
According to the U.S. Department of Justice, an estimated $4.5 billion was misappropriated from 1MDB between 2009 and 2014. A newly formed Malaysian government has said that it would seek up to $7.5 billion from the bank over its dealings with ousted former Prime Minister Najib Abdul Razak.
