Former Goldman Sachs executive Tim Leissner has reported to a federal prison in the United States to begin a two-year sentence for his role in the 1Malaysia Development Berhad (1MDB) financial scandal, one of the largest fraud cases in history.
According to his lawyer, Henry Mazurek, Leissner surrendered yesterday at a federal correctional facility in Allenwood, Pennsylvania. His sentence stems from a guilty plea made eight years ago, admitting to his involvement in the misappropriation of US$4.5 billion from Malaysia’s sovereign wealth fund.
The 1MDB scandal not only triggered the fall of the Malaysian government at the time but also forced Goldman Sachs to pay over US$5 billion to settle allegations of misconduct in the bond transactions. Leissner, a 56-year-old German national, had admitted from the outset that he participated in the scheme led by Malaysian businessman Jho Low, who remains at large.
Leissner later became a key witness for the US government during the 2022 trial of his former Goldman colleague, Roger Ng. Ng had denied wrongdoing following his 2018 charges but remained free at the time and is still wanted by authorities.
Leissner testified that of the approximately US$6.5 billion raised by Goldman Sachs through 1MDB bond transactions, at least US$4.5 billion was misappropriated. He also revealed that Jho Low paid around US$2 billion in bribes to foreign officials, while another US$1 billion was distributed as commissions to participants in the scheme.
Leissner further admitted receiving US$73.4 million directly from 1MDB, along with US$80 million from Jho Low. Since his sentencing in May, he had been granted four postponements to report to prison. However, US District Judge Margo Brodie denied a further delay, ordering him to serve his sentence without additional deferment.
Meanwhile, Roger Ng was convicted by a federal jury and sentenced to 10 years in prison. Shortly before beginning his sentence in 2023, Ng was returned to Malaysia to face trial under an agreement with the US.
In December last year, the Malaysian government filed for Leissner’s extradition. Records on the US Department of Justice website indicate that Leissner also filed a pardon application last year.
According to Mazurek, a pardon would be justified given Leissner’s role in exposing illegal activities by Goldman Sachs and other parties involved in the 1MDB scandal.
