NEW YORK: A former Goldman Sachs banker has been jailed for 10 years over his role in looting 1Malaysia Development Bhd (1MDB) of billions of dollars.
The money was used to finance lavish parties, a superyacht, premium real estate and even the 2013 film, The Wolf of Wall Street.
Roger Ng was convicted last April by a US District Court jury in Brooklyn, but continues to deny charges that he conspired to launder money and violated two anti-bribery laws.
Prosecutors said Ng and his co-conspirators helped raise US$6.5bil through bond sales, only to help syphon off more than two-thirds of the money, some of which went to pay bribes and kickbacks.
Reading from a prepared statement, Ng pleaded for mercy from US District Judge Margo Brodie.
“I’m embarrassed. I’m ashamed,” he told the judge. “I don’t want to live in resentment. I want to redeem myself.”
However, the judge admonished Ng: “The only explanation for your conduct is greed.”
Ng had hoped to avoid prison and be allowed to return to Malaysia, where he faces a separate prosecution. His lawyers argued that incarceration would worsen his “serious mental health condition”.
The looting of the 1MDB fund – and attempts to cover up the thefts – upended Malaysia’s government, sent ripples through Hollywood, where some of the stolen money had gone to finance films, and touched Washington, DC, where people involved funded a campaign to influence the outcome of the investigation.
The man said to be the architect of the plot, Malaysian financier Low Taek Jho, also known as Jho Low, remains an international fugitive. Before going into hiding, he was known for his business and social ties to American celebrities, including Leonardo DiCaprio and Kim Kardashian.
Ng’s lawyers acknowledged the 1MDB looting was “perhaps the single largest heist in the history of the world,” but said their client was the fall guy for Low and a fellow Goldman Sachs banker also charged in the US$4.5bil scheme.
Tim Leissner, Ng’s former boss at Goldman Sachs, pleaded guilty in 2018 to bribing government officials in Malaysia and Abu Dhabi. He was ordered to pay US$43.7mil and became a key government witness during Ng’s two-month trial.
Ng was extradited to the US in 2019 after spending six months in custody in Malaysia. He has been under house arrest for the past four years. Federal prosecutors had asked for a 15-year sentence.
Ng was released on bail and will surrender to authorities in two months, unless the judge grants his request to remain free while he appeals.
The judge declined to issue a fine but would consider a forfeiture amount, which could be anything up to US$35mil, in the future.
Ng, who oversaw investment banking in Malaysia for his firm, said Leissner implicated him to gain leniency during his own sentencing. Leissner has not been sentenced yet.
In 2020, Goldman Sachs acknowledged its role in the embezzlement scheme and paid more than US$2.3bil as part of a plea deal with the US government. The firm also reached a US$3.9bil settlement with the government of Malaysia.
The 1MDB fund was set up in 2009 by then Malaysian prime minister Datuk Seri Najib Razak.
The financial scandal led to the fall of his government in the 2018 elections. He was later found guilty of corruption and abuse of power and sentenced to 12 years in prison.
But Najib was acquitted last week of tampering with an audit to cover up wrongdoing.
The scandal also touched several figures in the US.
A top fundraiser for former President Donald Trump and the Republican Party, Elliott Broidy, was charged with running an illegal lobbying campaign on Jho Low’s behalf to have the investigation dropped. Broidy pleaded guilty but was pardoned by Trump.
A member of the hip-hop group the Fugees, Prakazrel “Pras” Michel, was also charged with being part of a conspiracy to help Low make illegal campaign contributions. Michel is awaiting trial. — AP
