Goldman Sachs Caught Running Scam of Historic Proportions, Pays Malaysia $3.9 Billion To Settle
July 24, 2020 (EIRNS)—Goldman Sachs has come to an agreement with Malaysia to end Malaysia’s criminal investigation of Goldman and several of its employees’ role in the 1MDB (1Malaysia Development Bhd) scam, under which the bank will pay $2.5 billion directly to Malaysia and perhaps up to $1.4 billion in proceeds from assets of 1MDB. Although this sounds like an enormous sum, Goldman is getting off easy. In total, an estimated $4.5 billion was stolen from 1MDB by a scam involving former Malaysian Prime Minister Najib Razak, the Saudis (who placed $681 million in one of Najib’s personal accounts) and others. Goldman—well aware of the amount of fraud it routinely commits—had $3 billion set aside for legal fees.
The U.S. FBI is continuing its own investigation, and may fine Goldman another $2 billion, and may also send some people to jail. The reported mastermind of the operation, Jho Low, spent unknown millions in wild Las Vegas parties, while funding the film “The Wolf of Wall Street.” Other criminal cases are going on in Singapore.
The scam involved the sale of at least $6.5 billion in bonds by 1MDB, with purchasers misled about how the money would be invested, and over $4 billion being siphoned away. In 2019, while Dr. Mahathir Mohamad was still Prime Minister, Goldman had offered to settle for $2 billion, which the Malaysian authorities rejected as too low.
Considering how much money Goldman and similar banks make from illegal activities such as this, the total penalties are simply the cost of doing business, and Wall Street analysts pointed to Goldman’s stock remaining stable despite the news.