Fraud in the News

Judge closes 1MDB chapter with 10-year sentence and more

Judge closes 1MDB chapter with 10-year sentence

In March, a U.S. judge handed out a 10-year jail sentence to former Goldman Sachs banker Roger Ng for money laundering and violating anti-bribery laws, closing a chapter on one of the world’s biggest-ever financial scams.

Prosecutors allege that Ng helped facilitate a scam that skimmed off much of the $6.5 billion raised between 2012 and 2013 through three Goldman Sachs-led bond deals for sovereign wealth fund 1Malaysia Development Berhad (1MDB). Ng’s lawyers admit the scheme was “perhaps the single largest heist in the history of the world.”

Ng acted as a liaison between 1MDB and Malaysian financier Jho Low, who’s still at large and accused of stealing $4.5 billion of Malaysian development money to fund a lavish lifestyle and back Hollywood films, including Martin Scorsese’s “The Wolf of Wall Street.” For his role in the scheme, Ng received $35 million in kickbacks, an amount that has yet to be recovered, say prosecutors. (See “Ex-Goldman banker given 10 years in prison for role in 1MDB fraud scandal,” by Edward Helmore, The Guardian, March 9, 2023 and “Ex-Goldman banker gets 10-year sentence in 1MDB looting plot,” by Bobby Caina Calvan, AP News, March 9, 2023.)

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