Goldman Sachs is trying to get prosecutors to lighten charges on the investment bank over its role in the 1MDB scandal, according to a «New York Times» report on Friday.
The report, which cited three people briefed on the matter, said lawyers for the bank have asked Deputy Attorney General Jeffrey Rosen to review demands by some federal prosecutors for Goldman to pay more than $2 billion in fines and plead guilty to a felony charge.
The request was made several weeks ago, according to the paper, which noted that it has become a point of pride for the U.S.-based bank that it has never had to admit guilt in a federal investigation. A guilty plea complicates a banks' ability to provide basic services in the U.S., like for pension funds, so Goldman will want to avoid it at all costs.
Goldman Sachs is entangled in the 1MDB scandal over allegations that it misled investors through a $6.5 billion bond sales to raise capital for sovereign wealth fund 1MDB. The Covid-19 pandemic has delayed the investigation but a resolution to the case, which has been ongoing since 2015, is expected by early September, the report said.
No Deal in Malaysia
The bank and 17 executives also face charges in Malaysia. Earlier this week, Malaysian officials said they would not accept a $3 billion settlement and will persist with its legal push if an acceptable sum is not reached.
In December 2019, former Goldman banker Tim Leissner was barred from the industry by the SEC, which secured a settlement deal that included the forfeiture of $43.7 million Leissner obtained as part of his role in facilitating bribes to senior officials in Malaysia and Abu Dhabi which resulted in $600 million in fees earned by Goldman Sachs, according to the U.S. Justice Department. He has is cooperating with authorities, though his sentencing has been moved from this month to January, the report said.
