Goldman Accused of Betrayal to Curry Malaysian PM’s Favor
Goldman Accused of Betrayal to Curry Malaysian PM’s Favor
By Chris Dolmetsch & Greg Farrell - July 26, 2016 — 10:21 AM EDT Updated on July 26, 2016 — 1:06 PM EDT
Goldman Sachs Group Inc. has another Malaysia problem.
The New York-based bank, already under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd, is now accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak, who controlled the billion-dollar state fund.
Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion in May 2011. Goldman used EON’s confidential information to help the bank buy EON on the cheap knowing that Najib’s brother served as a board member and another brother chaired the investment firm advising the bank, Primus Pacific Partners 1 LP said in the complaint.
The lawsuit comes as Goldman’s fundraising activities on behalf of 1MDB have drawn the attention of U.S. prosecutors. In a complaint filed last week, they laid out a road map that appeared to show how more than $2 billion raised by Goldman for 1MDB was siphoned off by politically connected people and funneled into various projects, including Hollywood movie productions, famous paintings and a Bombardier jet....
Read more:
http://www.bloomberg.com/news/articles/2016-07-26/goldman-sachs-former-banker-sued-over-malaysian-bank-takeover
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