KUALA LUMPUR – Former Goldman Sachs partner Tim Leissner testified that senior executives at the investment banking firm were aware that wanted financier Jho Low was involved in transactions related to 1Malaysia Development Bhd (1MDB) funds.
According to Bloomberg, Leissner, who took the stand for the first time yesterday as the United States government’s key witness in the federal bribery trial of his former subordinate Roger Ng, described his role in the multibillion-dollar scandal.
The 52-year-old told jurors in a courtroom in Brooklyn, New York that both Ng and himself as well as their colleagues were aware of Low’s role as a key decision-maker and were to include him in all major aspects of the lucrative 1MDB transactions.
Leissner admitted that while he and Ng concealed Low's efforts and bribes they paid to get business from Goldman’s compliance officials, other colleagues in the bank knew of the Malaysian businessman’s involvement.
Among the names Leissner mentioned in the trial include his boss and Asia chairman of the bank, Michael Evans, alongside several other former executives, including Toby Watson and John Donne.
The court further heard that Evans had travelled with Leissner to visit 1MDB executives after Goldman earned US$220 million (RM920.06 million) in the first bond transaction, known as Magnolia.
Evans, he said, had thanked the chief executive officer of 1MDB at the time for using Goldman.
“Don’t thank me,” Leissner said, while the CEO responded with “Thank Jho Low”.
“So Mike knew from that moment. Mike asked me during Magnolia if Jho was involved and I lied outright and I said no,” he was quoted as saying.
It is learnt that Evans, presently Alibaba Group president, didn’t immediately respond to an email sent by Bloomberg after business hours seeking comment on Leissner’s testimony.
Maeve DuVally, a spokesman for Goldman, declined to comment on Leissner’s testimony about his former colleagues.
“There were others at Goldman Sachs, on the business side, who we talked to about Jho’s involvement,” Leissner said.
He told the jury that he and Ng didn’t alert colleagues in compliance to the intermediary’s participation because their awareness would have raised red flags and stopped any transaction at Goldman.
Once the deals were sealed, Leessner testified that both Ng and himself were hailed as “heroes” by Goldman superiors.
Yesterday, Alex Cohen testified in Ng’s trial. Cohen is the chief financial officer of Strategic Group, an entertainment and marketing company that organised parties for Low.
He told the court that millions of dollars drained in the 1MDB scandal were spent by Low on luxurious parties and celebrity guests.
According to Bloomberg, Cohen testified that Low had provided Strategic Group with at least 25% of its profits in 2012, paying US$5,000 just for the talent scouting for one particular event – all with the roughly US$700 million allegedly sourced by Low from 1MDB.
The jury in Brooklyn, New York, also heard about invoices from a Las Vegas party for Low, where expenses such as food, beverages, “talent” and “top quality models” added up to more than US$3.6 million.
Bloomberg further reported that the jury panel was told about “celebrity fees” paid to Hollywood stars such as Leonardo DiCaprio (US$250,000), Paris Hilton (US$100,000), Megan Fox (US$250,000), and Kim Kardashian (US$50,000).
Ng, 49, is facing accusations of pocketing millions of dollars in kickbacks in the 1MDB deal, with allegations of money laundering and violating anti-bribery laws.
Meanwhile, Ng’s defence counsel Marc Agnifilo said his client had no role in the scheme, and that Leissner had lied about Ng’s role.
Agnifilo in his opening statement portrayed Leissner as a socialite who stole to finance a lavish lifestyle, reported Reuters.
Leissner pleaded guilty in 2018 for his involvement in the financial scandal, while Goldman reached a deal with the US Justice Department to pay more than US$2 billion for its role.
It is expected that Leissner will get a lighter punishment.
Low was charged in the US in 2018, but however remains a fugitive. – The Vibes, February 17, 2022
