Goldman Sachs to pay two billion fine to prevent criminal investigation on massive fraud

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The American bank Goldman Sachs would pay $ 2 billion to the US legal system to buy off the fraud scandal surrounding the Malaysian state fund 1MDB. The settlement can be announced this week, sources report to Bloomberg News Agency.

Goldman previously closed large case for the Malaysian state fund, which is at the heart of a major scandal in Malaysia. The former prime minister of the country, Najib Razak, would have had large sums of money thrown away by the fund. The Malaysian government established 1mdb as an investment fund for economic development in 2009. The Justice Department’s says billions of the fund have disappeared.

The agreement in the US is part of an international arrangement. In the event of payment, further criminal proceedings shall be avoided. The sum of USD 2 billion would also largely be in line with expert estimates.

Goldman had previously settled in Malaysia. In exchange for that amount, the Asian country will drop all charges against the American bank. Goldman’s already lost $ 5 billion. The Singapore authorities are also considering an arrangement.


By: Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is oliver.kjeldsen@economicinform.com

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