Federal Reserve Board Bars 2 Former Employees of Goldman Sachs Group Inc. from Banking Industry

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Friday, March 22, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
4
Abstract: 

On March 22, 2019, the Federal Reserve Board announced it has prohibited Ng Chong Hwa, also known as Roger Ng, and Tim Leissner from the banking industry due to their participation in a scheme to illegally divert billions of dollars from a Malaysian sovereign wealth fund.  In addition, the Board fined Leissner $1.42 million.  Leissner has consented to the permanent ban. Foreign subsidiaries of the Goldman Sachs Group Inc. hired Ng and Leissner to coordinate bond offerings arranged by Goldman for 1Malaysia Development Berhad (1Mdb) in 2012 and 2013.  The funds diverted from 1MDB were allegedly used for the conspirators’ personal benefit and to bribe certain government officials in Malaysia and Abu Dhabi. In August 2018, Leissner pleaded guilty to criminal charges brought by the Department of Justice in the Eastern District of New York for conspiring to violate the Foreign Corrupt Practices Act and to commit money laundering.  In October 2018, Ng was indicted on similar charges.