GOLDMAN Sachs, the bank at the heart of the 1MDB scandal, is close to a deal with the US government, which will allow it to escape a guilty plea and pay a fine of up to US$2 billion (RM8.6 billion), reports Bloomberg today.

Goldman Sachs filed an appeal with the Department of Justice over a guilty plea by a subsidiary in Asia.

Once the DoJ reaches a decision, a resolution, including a penalty as high as US$2 billion could follow, said the report.

In January, Malaysia filed a fresh summons to be served to investment bank Goldman Sachs (Singapore) Pte relating to the issuance of US$6.5 billion bonds to 1Malaysia Development Bhd (1MDB).

Four charges have been previously filed against Goldman Sachs entities for allegedly leaving out material facts on the sale of bonds between a subsidiary of 1MDB and Aabar Investment PJS Ltd.

The charges were filed against Goldman Sachs International and its two entities – Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) – as well as former banker Tim Leissner, former 1MDB general counsel Loo Ai Swan and Low Taek Jho. The latter two are fugitives.   

The investment bank’s units were charged with the issuance of the US$6.5 billion bonds to fund 1MDB’s independent power plant purchases, Tun Razak Exchange and Bandar Malaysia projects.

Goldman Sachs’ defence is led by Karen Seymour, said Bloomberg, who is tasked with ending the US criminal investigation into the billions the bank raised for 1MDB.

The scandal also ensnared former prime minister Najib Razak, who faces a total of 42 criminal charges in three trials linked to funds siphoned off the state fund.

Najib’s defence maintains that Low was the mastermind of the crimes linked to 1MDB.

If Seymour succeeds, Goldman Sachs will escape without a guilty plea and if not, she might barter over what details are included and excluded in a statement of facts outlining the investment bank’s conduct in Malaysia. – July 1, 2020.