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August 12, 2019

(Banks Not Bitcoin) 17 Goldman Sachs Execs Charged in Banking Scandal

By Daily Hodl Staff

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Former and current bankers at Goldman Sachs have been charged in the latest multi-billion-dollar banking scandal.

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Richard Gnodde, the CEO of Goldman Sachs International, the most senior international banker at the firm, is among those facing criminal charges brought by Malaysia’s attorney general. The bankers are accused of fraud involving 1Malaysia Development Berhad, the country’s sovereign wealth fund.

The money laundering trail, worth an estimated $2.7 billion, reportedly led from 1MDB and ended up in yachts, New York condominiums, hotels and the Hollywood blockbuster film “The Wolf of Wall Street.” The culprits: Goldman’s bankers who allegedly misled investors about bond sales.

Goldman banker, Tim Leissner, already pleaded guilty last year for conspiring to launder cash and violate the Foreign Corrupt Practices Act when he was indicted in connection with the 1MDB scheme.

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While initial charges were brought against three Goldman bankers in 2018, these latest charges involve high-ranking executives at the firm who were supposedly overseeing the dealmaking at 1MDB.

In a statement read by a Goldman Sachs spokesperson on Friday, the bank maintains its innocence.

“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.”

If convicted, the employees face up to 10 years in prison along with fines.

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Last month, US Treasury Secretary Steven Mnuchin stated that Bitcoin and cryptocurrencies are used to carry out illicit activities such as money laundering and human trafficking, calling them a “national security concern.” He vigorously pushed back against assertions that cash transactions and US dollars fuel similar money schemes.

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