Malaysia has filed criminal charges against 17 current and former directors at subsidiaries of Goldman Sachs Group in a multi-billion-dollar corruption investigation at state fund 1MDB, the attorney general said on Friday.
Goldman Sachs has been under scrutiny for its role in helping to raise $6.5 billion through bond offerings for 1Malaysia Development Bhd (1MDB), the subject of corruption and money laundering investigations in at least six countries.
Friday’s charges were brought under a section of the Malaysian Capital Markets and Services Act that holds certain senior executives responsible for any offences that may have been committed, Attorney General Tommy Thomas said.
“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.
The individuals charged include Richard Gnodde, chief executive of Goldman Sachs International and Michael Sherwood, vice chairman of Goldman Sachs Group Inc and co-chief executive officer of Goldman Sachs international, Thomas added.
Goldman Sachs did not immediately respond to a request for comment.
It has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of transaction proceeds.