Tim Leissner, former chairman of Southeast Asia for Goldman Sachs Group Inc., exits federal court in the Brooklyn borough of New York, US, on Thursday, May 29, 2025. Leissner, who pleaded guilty to helping loot the Malaysian investment fund 1MDB, was sentenced to two years in prison over his role in the massive fraud. Photographer: Yuki Iwamura/Bloomberg
PETALING JAYA: Former Goldman Sachs banker Tim Leissner apologised to Malaysians for his involvement in the 1Malaysia Development Bhd (1MDB) scandal, according to Reuters.
"First and foremost, I offer my sincere apology to the people of Malaysia," Leissner, 55, told the hearing, his voice breaking as he read a statement. "I deeply regret my actions."
He said this after being sentenced to two years in prison by a judge in a New York court on Thursday after playing a key role in a multi-billion-dollar scandal involving Malaysia's sovereign fund 1MDB.
Malaysian and United States authorities estimated US$4.5bil was stolen from 1MDB in an elaborate scheme that spanned the globe and implicated high-level officials in the fund, former Malaysian prime minister Datuk Seri Najib Razak, Goldman executives and others. Leissner, a former South-East Asia chairman for Goldman, pleaded guilty in 2018 to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, all tied to his role in the 1MDB scandal.
Leissner's conduct was "brazen and audacious," judge Margo Brodie said during sentencing. While his cooperation with the government was taken into account, it did not make up for the harm caused by the corruption at the highest levels in several countries, the judge said.
Goldman helped sell US$6.5bil of bonds for 1MDB, which former Malaysian prime minister Najib set up with the help of Low to promote economic development.
Some of the funds were diverted to offshore bank accounts and shell companies linked to Malaysian financier Jho Low, who is now a fugitive.
Leissner became a US government witness in the case after his arrest in 2018. He was allowed to remain free after he agreed to help the government in the investigation and testified against former banking colleague Roger Ng.
Ng has pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law. The former head of investment banking for Goldman in Malaysia was convicted in Brooklyn and sentenced to 10 years in prison, but was transported to Malaysia in 2023 to assist probes there.
Leissner met with the government on dozens of occasions, reviewing countless documents and communications he received related to the 1MDB scheme and other matters, according to a filing by prosecutors.
"We respect the court's decision today and Mr. Leissner is prepared to serve his sentence and continue his future life of good works and care for his family," said his lawyer, Henry Mazurek, a partner at Meister Seelig & Fein PLLC.
Prosecutors requested that the court impose a sentence below the applicable guidelines range due to Leissner's cooperation in the probe.
Malaysian minister Johari Abdul Ghani, who chairs its 1MDB asset recovery taskforce, said the two-year prison term for Leissner was
"too short".
"Considering he is one of the masterminds facilitating the 1MDB scandal, he should be given a maximum jail sentence," Johari told Reuters in a text message on Friday.
Only criminal case against Goldman
Leissner told the court that he had lost his freedom, family and financial independence in the wake of the scandal. The former executive said his health also suffered, and that he took pills and lost the will to live.
Goldman said in a letter to the court on May 21 that Leissner deceived his colleagues for years, culminating in the only criminal case filed against Goldman in its 156-year history.
Goldman in 2020 paid a record US$2.9bil fine in the United States and arranged for its Malaysian unit to plead guilty in a US court. It also clawed back US$174mil in executive compensation.
Malaysia's former prime minister Najib was found guilty in 2020 of criminal breach of trust and abuse of power for illegally receiving funds misappropriated from a unit of state investor 1Malaysia Development Berhad.
Malaysia's top court in 2022 upheld a guilty verdict against Najib, sentencing him to 12 years in prison. The sentence was later halved by a pardons board chaired by Malaysia's former king.
The former premier is currently in prison and is pursuing a legal bid to compel authorities to let him serve the rest of his sentence at home.
