FORMER Goldman Sachs banker Tim Leissner who was at the at the centre of the 1Malaysia Development Berhad (1MDB) scandal, has officially commenced a two-year prison sentence in the United States, nearly ten years after acknowledging his role in one of the largest financial frauds in modern history.
Bloomberg reported on Saturday that Leissner, 56, surrendered on Friday to a federal correctional facility in Allenwood, Pennsylvania, after a US court rejected repeated attempts to delay his incarceration, according to his attorney, Henry Mazurek.
The German-born financier was among the principal figures in a scheme that diverted billions of dollars from Malaysia’s sovereign wealth fund.
The scandal played a significant role in the 2018 downfall of the Barisan Nasional government and forced Goldman Sachs to pay more than US$5 billion in settlements related to bond offerings used to raise 1MDB funds.
Leissner pleaded guilty in 2016 to conspiracy to launder money and violating anti-bribery statutes, becoming one of the first insiders to admit wrongdoing.
He subsequently cooperated extensively with US authorities, serving as the star witness in the 2022 trial of his former Goldman colleague, Roger Ng.
During that trial, Leissner revealed that at least US$4.5 billion of the US$6.5 billion raised through three Goldman bond offerings for 1MDB had been misappropriated. He testified that around US$2 billion went in bribes to foreign officials, while another US$1 billion was distributed as kickbacks to other participants in the scheme.
Leissner admitted personally receiving US$73.4 million from 1MDB, as well as US$80 million from Malaysian financier Low Taek Jho, widely known as Jho Low, whom US prosecutors allege masterminded the operation. Low, who has consistently denied wrongdoing, was charged in 2018 and remains a fugitive.
US District Judge Margo Brodie last week dismissed a fifth request to postpone Leissner’s surrender, following four previous adjournments after his sentencing in May.
Roger Ng was convicted by a federal jury and sentenced to 10 years’ imprisonment, though he was transferred to Malaysia in 2023 under a bilateral agreement to face domestic charges.
The Malaysian government has announced its intention to seek Leissner’s extradition.
Mazurek emphasised that Leissner’s cooperation was pivotal in exposing misconduct by Goldman Sachs and other parties involved in the scandal.
He added that Leissner submitted a pardon application to the US Department of Justice last year.
Leissner’s incarceration represents a landmark moment in one of the most notorious global financial fraud cases of the 21st century, highlighting the complex network of corruption surrounding 1MDB and its far-reaching international consequences. - February 7, 2026
