Goldman Sachs Banker in Malaysian Fund Scandal Is Barred From Banking

Goldman had hoped to have a deal wrapped before its inaugural investor conference last week. But it could take several more weeks, especially if the settlement involves a deal with Malaysian authorities, according to two people familiar with the discussions who were not authorized to speak publicly.

The Fed specifically faulted Mr. Vella, who resigned from Goldman last weekend, for not doing more to ensure that a Malaysian financier named Jho Low had no role in the bond sales, which generated $600 million in fees for Goldman.

Mr. Low was indicted by federal prosecutors in Brooklyn and prosecutors in Malaysia, who have called him the mastermind of the scheme to steal more than $2.7 billion from the fund. The diverted money was used to pay bribes to Malaysian officials, buy high-priced real estate and provide financing for the movie “The Wolf of Wall Street.”

Lawyers for Mr. Low have maintained his innocence, but he has never made a formal court appearance in either country to respond to the criminal charges. He is believed to be living in China and has occasionally had public relations firms issue statements on his behalf.

Compliance officials with Goldman had repeatedly warned against Mr. Low being involved as an intermediary in the transactions because of questions about the source of his wealth.

Article source: https://www.nytimes.com/2020/02/04/business/goldman-sachs-banker-in-malaysian-fund-scandal-is-barred-from-banking.html?emc=rss&partner=rss