NEW YORK: Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison on Thursday for his role in the massive 1MDB corruption scandal, which saw billions of dollars siphoned from Malaysia’s sovereign wealth fund.
Leissner, 55, who once served as Goldman’s Southeast Asia chairman, pleaded guilty in 2018 to conspiring to violate the Foreign Corrupt Practices Act and laundering money tied to the scheme.
During the sentencing in a Brooklyn federal court, US District Judge Margo Brodie described his actions as “brazen and audacious,” adding that the damage caused by the scandal extended across borders and affected public trust.
While Leissner cooperated extensively with prosecutors and becoming a star witness against his former colleague Roger Ng, Judge Brodie said his assistance did not erase the harm he helped inflict.
“First and foremost, I offer my sincere apology to the people of Malaysia,” Leissner told the court with visible emotion. “I deeply regret my actions.”
Authorities from both Malaysia and the United States estimate that US$4.5 billion (RM19.3 billion) was misappropriated from 1Malaysia Development Berhad (1MDB), a fund originally set up to drive Malaysia’s economic development under former prime minister Datuk Seri Najib Razak.
Instead, much of the money was embezzled through a web of transactions involving shell companies and offshore accounts, allegedly orchestrated by Malaysian financier Jho Low, who remains a fugitive.
Leissner played a central role in helping Goldman Sachs raise US$6.5 billion in bonds for 1MDB. He later admitted to fabricating documents and misleading compliance officials to get deals approved.
After his arrest in 2018, he agreed to cooperate with US prosecutors, meeting with them dozens of times and providing extensive information and testimony.
His cooperation contributed to the conviction of Roger Ng, Goldman’s former head of investment banking in Malaysia, who was sentenced to 10 years in prison before being transferred to Malaysia to assist in further investigations.
Despite his collaboration, Leissner said the fallout from the scandal left him broken. “I lost my freedom, my family, and my financial independence. My health also deteriorated. I took pills and even lost the will to live,” he said in court.
Goldman Sachs distanced itself from Leissner, telling the court in a letter that he had “repeatedly deceived” colleagues and that his actions led to the only criminal case ever filed against the bank in its 156-year history.
In 2020, Goldman paid a record US$2.9 billion fine and had its Malaysian subsidiary plead guilty in US court. The bank also clawed back US$174 million in executive compensation.
Najib Razak was convicted in 2020 for receiving misappropriated funds from a 1MDB-linked unit and was sentenced to 12 years in prison. Malaysia’s top court upheld the ruling in 2022. His sentence was later reduced to six years by a royal pardon, and he is now seeking to serve the remainder under house arrest.
Leissner’s lawyer, Henry Mazurek, said his client accepts the sentence and intends to focus on rebuilding his life. “Mr. Leissner is prepared to serve his sentence and continue his future life of good works and care for his family,” he said.
