The fall out from the toxic 1MDB wealth fund continues with news of another industry regulator taking action.
The scandal around 1Malaysia Development Berhad (1MDB), the strategic development company, wholly owned by the Government of Malaysia has claimed numerous scalps.
The latest to feel the wrath of an industry regulator is the former Goldman Sachs Southeast Asia head Tim Leissner. The ex-Goldmans man relocated to Los Angeles from Singapore in February 2016 and subsequently left the bank.
Prohibited For 10 Years
Leissner has been barred from the U.S. securities industry for failing to provide documents to a regulator. The Financial Industry Regulatory Authority (Finra) issued an indefinite bar on 11 September saying Leissner didn’t submit to its requests during an investigation, according to his employment records on Finra’s website.
The Monetary Authority of Singapore (MAS) issued a Prohibition Order against Leissner. The order prohibits Leissner for a period of 10 years from performing any regulated activity under the Securities and Futures Act, and taking part, directly or indirectly, in the management of any capital market services firm in Singapore.
Leissner moved to Goldman Sachs (Asia) in Hong Kong in November 2011. But he maintained his representative status with the firm until his resignation and was therefore subject to MAS’ requirements to being fit and proper to carry out regulated activities.
Top Malaysian Adviser
U.S. investigators have been attempting to trace if cash could have flowed out of the fund and unlawfully found its way into personal accounts. Authorities in Singapore, Switzerland and other jurisdictions are also conducting their own investigations.
According to reports the American bank was involved in almost $19 billion in Malaysian mergers and acquisitions since 2010, making it the top foreign adviser to the country.
