SINGAPORE (Reuters) - A former Goldman Sachs Group Inc. (GS.N) banker is in talks with U.S. prosecutors to potentially plead guilty to criminal charges stemming from an alleged scheme to steal billions of dollars from a Malaysian state investment fund, the Wall Street Journal reported, citing people familiar with the matter said.
The report said the talks bring the fast-moving investigation closer to Goldman, which raised billions of dollars for 1Malaysia Development Bhd (1MDB).
It also comes after Malaysia’s former prime minister, Najib Razak, who founded the fund and lost his re-election bid earlier this year, was charged with abuse of power and criminal breach of trust in relation to SRC International, a former 1MDB unit.
Najib pleaded not guilty to those charges and has consistently denied any wrongdoing in relation to 1MDB.
Tim Leissner, a one-time Goldman partner and Southeast Asia chairman hasn’t been charged. He is seeking an agreement with prosecutors that would involve his co-operation with the government’s criminal fraud probe into 1MDB and Goldman, the report said.
A spokeswoman for the U.S. Department of Justice (DoJ) declined to comment. A lawyer for Leissner also declined to comment.
A Goldman Sachs spokesman told Reuters: “Since we suspended Mr. Leissner, we have discovered certain activities he undertook that were deliberately hidden from the firm, which we have brought to the attention of the relevant authorities who continue to receive our full cooperation.”
Last month, citing sources familiar with the matter, Reuters reported that Malaysia is considering asking the DoJ to get Goldman Sachs
