Roger Ng, a former Goldman Sachs banker, was sentenced to 10 years in prison on Thursday (Mar. 9) for his role in the 1MDB scandal. The case involves the looting of billions of dollars from Malaysia's sovereign wealth fund, 1MDB, in a scheme that saw money siphoned off for personal gain by high-level officials, including Malaysia's former prime minister, Najib Razak.
Ng was convicted of bribery and conspiracy charges for his involvement in the scheme, which he helped orchestrate while working at Goldman Sachs. The bank itself also faced charges in the case, paying billions in settlements for its role in underwriting bonds for 1MDB.
Former Goldman Sachs Malaysia head of investment banking Ng was found guilty by a federal court in Brooklyn, New York City, in April of 2016 of aiding and abetting his former boss Tim Leissner in embezzling money from the fund, laundering the proceeds, and bribing government officials to win business.
The sentencing judge, U.S. District Judge Margo Brodie, stated that Ng and his co-defendants "effectively stole money" intended for infrastructure and economic development projects to help the Malaysian people.
"There is a critical need to deter crimes of pure greed like this one," Brodie said.
The bonds that Goldman helped 1MDB, a Malaysian government investment fund, in selling in 2012 and 2013 are at the center of the charges.
Prosecutors in the U.S. have claimed that $4.5 billion of that amount was stolen in one of the largest financial scandals in Wall Street history.
Ng's involvement in the scandal resulted in one of the biggest financial frauds in history and has led to charges against multiple high-profile individuals and financial institutions.
The scandal has had far-reaching implications, leading to the downfall of Malaysia's government and criminal charges against numerous individuals and financial institutions.
Former Malaysian PM Razak is believed to have played a key role in the 1MDB scandal, one of the largest financial frauds in history. Razak established the 1MDB sovereign wealth fund in 2009, and subsequent investigations revealed that billions of dollars were misappropriated from the fund for personal gain by various individuals, including Razak himself.
In July 2020, Razak was found guilty of seven counts of corruption and money laundering related to the scandal and was sentenced to 12 years in prison. The case against him is considered a significant victory in the fight against corruption in Malaysia.