WASHINGTON, March 12 (Xinhua) -- U.S. Federal Reserve (Fed) announced on Tuesday that two former employees of the famous investment bank Goldman Sachs Group, Inc., were banned from banking industry.
"The Federal Reserve Board on Tuesday announced that it is prohibiting Tim Leissner and Ng Chong Hwa, also known as Roger Ng, from the banking industry for their participation in a scheme to illegally divert billions of dollars from a Malaysian sovereign wealth fund," said the Fed.
Leissner and Ng were both employed by foreign subsidiaries of the Goldman Sachs. In 2012 and 2013, they coordinated bond offerings arranged by Goldman for a Malaysian state fund named 1Malaysia Development Berhad, as known as 1MDB.
"The funds diverted from 1MDB were then used for the conspirators' personal benefit and to bribe certain government officials in Malaysia and Abu Dhabi," said the Fed.
Leissner pleaded guilty to criminal charges In August 2018, including conspiring to violate the Foreign Corrupt Practices Act and to commit money laundering. In October 2018, Ng was indicted on similar charges, said the Fed.
According to the Fed, Leissner consented to the permanent ban imposed by the central bank of United States. In addition, Leissner was fined 1.42 million U.S. dollars.
The Goldman Sachs Group, Inc., is a famous investment bank and financial services provider. Headquartered in New York City, the banking giant ranked 70th on the Fortune 500 list in 2018.