In 2015, a scandal involving the state-owned 1Malaysia Development Berhad fund brought down the country's authoritarian government, amid allegations that the disgraced ex-Prime Minister Najib Razak and his retinue embezzled $4.5 billion from the fund.
The new, progressive government has been aggressively pursuing the fraudsters; it had previously secured criminal convictions against Goldman-Sachs bankers and the "tabloid party boy" Jho Low, who is now a fugitive believed to be in China.
Now the government has accused Goldman Sachs of criminal complicity in the scandal. Goldman Sachs denies culpability, saying that they believed the prime minister and his officials when they told Goldman Sachs's compliance department that what they were doing was legal.
Goldman Sachs shares dropped 2.8% on the news. If convicted, Goldman Sachs would have to refund the $600m it charged the scammers in fees and pay fines.
This is the first time Goldman Sachs, which has consistently denied wrongdoing, has faced criminal charges in the 1MDB scandal.
"Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions," Goldman spokesman Michael DuVally said in a statement.
"1MDB, whose CEO and Board reported directly to the prime minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved," DuVally said.
Goldman Sachs fires back after Malaysia charges bank in 1MDB probe
(via Naked Capitalism)
Writing in Wired, Zeynep Tufekci (previously) discusses how the internet has become a "low-trust society," where fake reviews, fraud, conspiracies and disinformation campaigns have burdened us all with the need to investigate every claim and doubt every promise, at enormous costs to time and opportunity.
KPMG is one of the "Big Four" accounting firms: that means that whenever a plan for a business or a public project has a box that says, "Make sure no one is cheating," it means that you hire KPMG or one of its rivals to come in and check the books and make sure that […]
These guys really aren’t even trying to hide how feckless and corrupt they are anymore, are they.
When it comes to large computer systems, not one of them is fully secure. Even with constant updates to the platforms that keep vital networks humming, there’s always a back door. And companies are willing to pay handsomely to effective bouncers that can keep an eye on them. Call them ethical hackers or white hat […]
So you’ve visited the Kennedy Space Center every year. You’ve watched “The Right Stuff” for the 95th time. There must be something to do while you’re waiting to join Space Force for the next manned mission to Mars or the moon. Here’s a combo that should raise a salute from any fan of space or […]
Looking for a new tablet? If you haven’t upgraded in a while, it might be time to check out the latest iPad Pro for two very good reasons. First, the 2018 model is a real workhorse. The 12X Bionic chip processor means it can handle any task you set out for it, and still have […]