FORMER prime minister Najib Razak has been named as one of the recipients of kickbacks dished out for bonds raised by Goldman Sachs, according to a filing by the US Securities and Exchange Commission (SEC) yesterday.

Besides the millions of dollars transferred to shell companies controlled by 1Malaysia Development Bhd (1MDB) officials, a sum of US$1.3 million was used to pay a New York jeweller for jewellery purchased by Najib’s wife Rosmah Mansor, said the filing.

The filing said former Goldman Sachs executive Tim Leissner had misappropriated more than US$2.7 billion of the US$6.5 billion raised through bond transactions to distribute to officials in Malaysia and Abu Dhabi.

Among those who had received the funds included Najib, who is currently on trial for corruption charges for receiving RM42 million from a 1MDB subsidiary, SRC International, said the filing.

The filing added that Leissner had paid kickbacks to other participants of the scheme and their families.

“Leissner knew that a large portion of the proceeds of Project Maximus would be illegally diverted to himself and others including government officials through shell companies beneficially owned and controlled by himself and others,” SEC said, referring to Goldman Sachs’ internal code name for the bond issue it helped arrange.

“Leissner also knew at the time that Najib Razak and government officials from Abu Dhabi and 1MDB officials would receive money from the proceeds of Project Maximus that passed through various shell companies.

“Along with Low Taek Jho or Jho Low and others, it was Leissner’s intended purpose that the payments were to flow to these government officials to influence them to execute the bond transaction with Goldman Sach.

“A close relative of Najib Razak and a senior official with the Middle Eastern Sovereign Wealth Fund, were among others who had received some of these funds,” said the filing.

The filing was made after SEC announced that it had settled charges against Leissner for engaging in a corruption scheme.

In the settlement, Leissner has agreed to a permanent bar from the securities industry.

The SEC’s order also requires Leissner to pay disgorgement of US$43.7 million, which will be offset by amounts paid pursuant to a forfeiture order as part of a resolution in a previously instituted parallel criminal action by the US Department of Justice.

SEC Enforcement Division unit chief Charles Cain said in a statement that Leissner had abused his leadership role in Goldman Sachs by engaging in a massive bribery scheme targeting the highest level of two foreign governments.

Leissner has consented to the SEC order finding that he violated anti-bribery laws in the US and has agreed to be permanently barred from the securities industry. – December 18, 2019.