UNITED STATES: Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison on 29 May 2025 in a New York court for his involvement in the massive 1MDB corruption scandal.
Presiding judge Margo Brodie described Leissner’s conduct as “brazen and audacious” during the sentencing.
She acknowledged his cooperation with authorities but said it did not outweigh the damage caused by the scandal, which affected high-level officials and institutions across several countries.
The former Southeast Asia chairman at Goldman Sachs had pleaded guilty in 2018 to conspiring to violate the Foreign Corrupt Practices Act and engaging in a money laundering conspiracy.
These charges were linked to his role in the misappropriation of billions of dollars from Malaysia’s state investment fund, 1Malaysia Development Berhad (1MDB).
“I offer my sincere apology to the people of Malaysia,” said Leissner, 55, during the court hearing, his voice breaking as he read a prepared statement. “I deeply regret my actions.”
Leissner was a central figure in the scheme that saw Goldman Sachs help 1MDB raise US$6.5 billion through bond sales.
A significant portion of these funds was siphoned off to offshore accounts and shell companies tied to Malaysian financier Jho Low, who remains a fugitive.
Authorities in Malaysia and the United States estimate that approximately US$4.5 billion was stolen through the 1MDB fund, originally established by former Malaysian Prime Minister Najib Razak.
The fund was intended to promote economic development, but instead became the centre of one of the world’s largest financial scandals.
Following his arrest in 2018, Leissner cooperated extensively with US prosecutors.
He met with investigators on numerous occasions, reviewed documents, and testified against his former colleague Roger Ng, Goldman’s former head of investment banking in Malaysia.
Ng denied wrongdoing but was convicted in Brooklyn and sentenced to 10 years in prison. He was later transported to Malaysia in 2023 to assist with local investigations.
Leissner’s legal team, led by Henry Mazurek, highlighted the extent of his cooperation in seeking leniency.
“We respect the court’s decision today and Tim Leissner is prepared to serve his sentence and continue his future life of good works and care for his family,” Mazurek said.
Prosecutors also acknowledged his cooperation and had requested a sentence below standard guidelines.
In court, Leissner described the personal toll the scandal had taken, stating that he had lost his freedom, family and financial independence. He also shared that he had struggled with his mental and physical health in the years since.
In a letter to the court dated 21 May, Goldman Sachs asserted that Leissner had deceived the firm’s leadership for years.
The bank’s involvement in the scandal led to the only criminal case against the institution in its 156-year history.
Goldman Sachs reached a settlement in 2020, paying a record US$2.9 billion fine in the United States and having its Malaysian subsidiary plead guilty in US court.
The bank also reclaimed US$174 million in executive compensation.
Najib Razak, the former Malaysian prime minister, was found guilty in 2020 of criminal breach of trust and abuse of power for receiving funds linked to 1MDB.
In 2022, Malaysia’s highest court upheld his conviction and sentenced him to 12 years in prison. The sentence was later halved by a pardons board chaired by Malaysia’s former king.
Najib remains in prison and is currently seeking to serve the remainder of his sentence under home detention.
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