Former Prime Minister of Malaysia Najib Razak was found guilty by a court in Malaysia on Monday in a money laundering case involving Goldman Sachs Group, Inc (NYSE:GS), the Wall Street Journal reported.
The guilty verdict pertains to the 1Malaysia Development Bhd. fund (1MDB). It's alleged that Najib received hundreds of millions of dollars from the fund, launched in 2009.
Investigators in the United States claim that more than $4.5 billion was siphoned off between 2009 and 2014 and laundered through Hollywood productions, real estate, artworks and a luxury yacht.
Najib has been found guilty of all seven charges against him, including abuse of power and criminal breach of trust. A unit operating under 1MDB had allegedly transferred $10 million to the former prime minister's personal bank accounts.
Each charge carries a maximum sentence of 15 to 20 years in prison.
Why It Matters
Last week, Goldman Sachs agreed to pay the Malaysian government $2.5 billion and also guaranteed recovery of $1.4 billion in stolen assets, the Journal noted.
The beleaguered prime minister’s stepson Riza Aziz has reached a settlement with the Malaysian government over the 1MDB scandal, which will see the authorities recover $107.3 million in assets abroad, Bloomberg reported.
Riza is the producer of the Leonardo DiCaprio starrer “The Wolf of Wall Street.” His co-founded production house Red Granite Pictures Inc previously reached a $60 million settlement with U.S. Justice Department over allegations that the movie was funded by money stolen from the Malaysian state fund.
Goldman Sachs shares closed 0.77% higher at $203.02 on Monday.
Photo courtesy: Firdaus Latif on Wikimedia Commons