The former head of Goldman Sachs in Malaysia is jailed for his role in a massive financial corruption scheme in the US.
A US judge sentenced Roger Ng to 10 years in prison after he was convicted in a trial last year of looting billions of dollars from the country’s sovereign wealth fund 1MDB.
The scandal led to massive fines for Goldman and rocked Malaysian politics.
He had denied the allegations, including money laundering and bribery.
In 2020, former Malaysian Prime Minister Najib Razak was sentenced to 12 years in prison after being found guilty in a Malaysian 1MDB trial.
Ng, who had argued he was a “case guy” for bigger players, had hoped to be released.
However, prosecutors asked for 15 years in prison for Ng, saying he played a key role in a corruption scheme that took money for infrastructure and economic development projects and instead used the money for bribes and personal gain.
The charges against Ng stemmed from bond deals Goldman helped arrange in 2012 and 2013, which raised $6.5bn (£5bn) for the 1MDB fund, set up to finance public development projects.
Authorities say more than $4.5 billion (£3.9 billion) has been stolen and spent on art, diamonds and property – even helping to fund the Hollywood film Wolf of Wall Street.
Prosecutors said Goldman Sachs bankers helped launder some of the money, some of which was paid as bribes to officials in Malaysia and Abu Dhabi to win business for the bank.
Prosecutors said Ng was central to the scheme and introduced his boss at Goldman, Tim Leissner, to Sino-Malaysia financier Jho Low, the alleged mastermind and confidant of former Prime Minister Razak.
Ng, who worked for Goldman from 2005 to May 2014, received a $35million (£29million) kickback for his role, according to the US Department of Justice.
“Roger Ng was a key player in a bold and bold plan that not only victimized the people of Malaysia but also risked undermining public confidence in governments, markets, corporations and other institutions on a global scale,” said US Attorney Breon Peace in a statement.
“Today’s verdict serves as just punishment for the defendant’s crimes and as a warning that there is a heavy price to pay for corporate corruption.”
Ng’s lawyers had pleaded for “mercy”, citing six months in prison in Malaysia while he awaited deportation to the US and four years of house arrest.
His family also waived the money made from 1MDB deals and more, they wrote.
“There is no doubt that Mr. Ng has suffered and been punished every day since the day he was arrested,” they wrote, noting the toll the case has already taken on Ng’s mental health and family.
In 2020, Goldman secured a $3.9bn (£3.2bn) settlement with the Malaysian government for its role in the multi-billion dollar corruption scheme.
The company also paid nearly $3bn (£2.5bn) to authorities in four countries to complete an investigation into the work it had carried out for 1MDB.
Leissner admitted to money laundering and bribery allegations in a 2018 plea deal with the government. He is awaiting sentencing after testifying against Ng in court, a collaboration that is expected to reduce his sentence.
Jho Low was charged alongside Ng in 2018 but remains at large.
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