How they rob you: 1MDB and Goldman Sachs
"A Swiss whistleblower who leaked damning evidence of the scheme to the media was arrested in 2015 by Thai police on trumped-up charges. He signed a forced confession and spent eighteen months in jail. At least one Malaysian official investigating the crime was murdered, his body stuffed into an oil barrel and encased in concrete. Well-remunerated international legal and PR firms worked to suppress public knowledge of their clients’ misdeeds by lying to the media and threatening litigation. Coursing across the globe, the money reached many distant corners, including both the Obama and Trump campaigns. Former British prime minister Tony Blair was on the payroll of one of the conspirators for $65,000 a month"
“Using prestigious, brand-name gatekeepers is often the key to pulling off complex financial crimes,”
"murdered by two of Najib’s bodyguards, who then destroyed her body with plastic explosives. One of them, who was scheduled to be hanged, confessed that the minister himself had ordered the killing."
"the sale of $1.4 billion worth of bonds; $126 million was immediately siphoned off "
"Seven hundred million of that sum, disguised as the repayment of a loan—which didn’t actually exist—was then wired to a private Swiss bank account "
"New York law firm White & Case crafted the legal paperwork. Respectable banks, such as the Swiss branch of J.P. Morgan and Coutts (where Queen Elizabeth II keeps her money), handled massive transactions without asking too many questions,"
"Najib helped himself to $1 billion, including $681 million wired into his personal bank account in March 2013 for the urgent purpose of financing his 2013 presidential campaign. Thanks to the money, he eked out a narrow victory"
" paid Paris Hilton to attend his parties at $100,000 per bash. Other high-dollar outlays included private jets, $100 million properties, and a $250 million yacht"
"the firm’s executives in London had discerned the rich pickings to be had in Muammar Qaddafi’s Libya, whose vast sovereign-wealth fund lay in the hands of managers whom Goldman coolly assessed as displaying “zero-level” financial sophistication. ... the Libyans ... were out $1.2 billion, while Goldman took home fees totaling as much as $350 million ... the Libyans sued on grounds that they had been misled, but an indulgent British judge let the bank off the hook"
"In September 2009, when Leissner recommended Low for an account with Goldman’s private-wealth bank in Switzerland, the internal compliance office summarily rejected the proposal on account of the mysterious provenance of Low’s wealth. Notwithstanding this emphatic red flag, according to the Wall Street Journal, Lloyd Blankfein met personally with Najib, Low, and Leissner just two months later at the Four Seasons Hotel in New York City to discuss future deals. This was the first of no fewer than three meetings that the CEO reportedly had with Low. In 2012, seemingly oblivious to any possible “reputational consequences,” the bank embarked on a series of three major deals with the Malaysian conspirators"
"in May 2012 Goldman sold $1.75 billion in 1MDB bonds, mostly to unwitting mutual funds in Asia, creaming off $192 million for itself ... Goldman’s enormous cut, 11 percent, was as much as two hundred times the customary rate. A few months later, the bank sold another $1.75 billion worth of bonds, with a similar whopping rake-off for Goldman. Then, in March 2013, only ten months after the first bond sale, Goldman launched Project Catalyze, the third and largest deal, a $3 billion bond issue, purportedly for “energy” and “strategic real estate.” According to U.S. prosecutors, nearly $300 million went to Goldman, while $681 million sped to Najib"
"Over the course of a year, Goldman had earned $600 million from its deals with Low, a man whom its own internal watchdogs had warned was highly suspect"
"White was the national vice chair of President Obama’s reelection campaign, raising at least $500,000 for the race, and he went on to serve as a cochair of Obama’s Inaugural Committee. In 2012, he received a $10 million “consulting” payment from a firm owned by one of Low’s business partners, one who had played an integral role in the Goldman-brokered bond deals. Additional millions were channeled from the fund into DuSable Capital, an “energy and infrastructure firm” co-owned by White and Pras Michel, a former member of the hip-hop group Fugees whom Low had met on the party circuit. (According to a 2019 federal indictment, Low sent Michel $21 million, much of it to be laundered into a number of Democratic campaigns."
"there was little sign of construction on the solar plant, but 1MDB nonetheless paid DuSable a handsome $69 million for its 49 percent share in the project."
"Trump also praised his visitor’s commitment to fighting terrorism—a point that surely gratified the 1MDB chief, given that Najib was claiming this as the very reason he had received a cool $681 million as a present from the Saudis. One month later, Michel sent Broidy at least $6 million from an account controlled by Low"
"The Malaysian people ... will be spending almost half a billion dollars a year in interest and principal on 1MDB’s debt—which includes the bonds sold by Goldman—until 2039."
"“Goldman’s position is that a ‘rogue’ banker lied and fooled all of the smartest, highest-paid bankers in the world; all of Goldman’s risk, compliance, legal, and audit systems and controls; and all of Goldman’s management.” "
"Goldman’s motion asserts that Blankfein and company were kept ignorant of criminal goings-on by their subordinates"
" It’s a big swamp."
https://harpers.org/archive/2020/05/the-malaysian-job-wolf-of-wall-street-1malaysia-development-berhad/sidd