Former Goldman Sachs MD Gets 10 Years for Embezzling From Malaysia’s 1MDB

Roger Ng allegedly laundered ill-gotten funds through financing ‘The Wolf of Wall Street.’



A former managing director of Goldman Sachs recevied a 10-year prison sentence for conspiring to launder billions of dollars that had been embezzled from 1Malaysia Development Berhad, Malaysia’s state investment fund. 

According to court documents, between 2009 and 2014, Ng Chong Hwa, also known as Roger Ng, laundered billions of dollars that had been misappropriated and fraudulently diverted from 1MDB. This includes money the Malaysian pension fund raised in 2012 and 2013 through three bond transactions with Goldman Sachs—allegedly in exchange for bribe money.

Ng and his co-conspirators, including Goldman Sachs’ former Southeast Asia chairman and participating managing director Tim Leissner, allegedly paid more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain business for Goldman Sachs, including the 2012 and 2013 bond deals.

According to the indictment, Ng and his co-conspirators laundered the proceeds of the ill-gotten funds through purchasing a $51 million Jean-Michel Basquiat painting from Christie’s auction house, a $23 million diamond necklace, millions of dollars in Hermès handbags and luxury Manhattan real estate, among other things. Ironically, the laundering also allegedly included funding major Hollywood films, including “The Wolf of Wall Street,” a film about corruption and fraud in finance.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also risked undermining the public’s confidence in governments, markets, businesses and other institutions on a global scale,” U.S. Attorney for the Eastern District of New York Breon Peace said in a release.

The Department of Justice said Ng spent years cultivating a relationship with wealthy Malaysian socialite Low Taek Jho—also known as Jho Low—to take advantage of Low’s close relationships with high-ranking government officials in Malaysia and the United Arab Emirates, whom Ng allegedly bribed. It also said that Goldman Sachs, through its work for 1MDB during that time, received approximately $600 million in fees and revenue, while Ng received $35 million for his role. In total, Ng and his co-conspirators misappropriated more than $2.7 billion from 1MDB, according to the Justice Department.

When Ng tried to make Low a private wealth management client for Goldman Sachs, he allegedly lied to the firm’s compliance personnel about his relationship with Low when confronted with questions about Low’s government connections and source of wealth. Ng also allegedly communicated with Low about business opportunities using personal email accounts to avoid detection by Goldman Sachs compliance.

Leissner, who is awaiting sentencing, pleaded guilty in 2018 for conspiring to launder money and conspiring to violate the Foreign Corrupt Practices Act of 1977. He was ordered to forfeit $43 million and shares of stock worth more than $200 million. Low remains a fugitive at large.

Related Stories:

UK Regulators Fine Goldman Sachs International $126 Million for 1MDB ‘Failures’

Police Pension Fund Sues Goldman Sachs for 1MDB Records

US Recovers More Than $700 Million Stolen From Malaysian Sovereign Wealth Fund

Tags: , , , , , , , , , , ,

Ontario Pension to Invest Nearly $17 Billion in Green Investments by 2030

The strategy is part of Healthcare of Ontario’s plan to get its portfolio to net-zero greenhouse gas emissions by 2050.




The Healthcare of Ontario Pension Plan announced it intends to make C$23 billion ($16.8 billion) in green investments by the end of the decade as part of its strategy to get its portfolio to net-zero of greenhouse gas emissions by 2050.

In its recently released climate plan, the C$103 billion Canadian pension fund said its strategy is to decrease the size of its portfolio’s carbon footprint through real-world emissions reductions.

“The plan recognizes that climate change poses both risks and opportunities, and that managing these as part of the investment process is essential to our fiduciary responsibility,” a HOOPP release stated.

As part of its short-term climate targets, the pension fund is aiming to have 80% of its assets provide reported emissions by 2025 to offer a more accurate measurement of progress. It also said it expects to exclude new direct investments in private thermal coal and oil exploration and production companies, and to initiate Scope three portfolio emissions measurement, in less than three years.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

In addition to allocating C$23 billion in capital to green investments by 2030, the plan calls for reducing the portfolio’s carbon footprint by 32% compared with a 2021 baseline. It also said it expects that by 2030, at least half of its infrastructure and private equity portfolios will be covered by credible transition plans, and that it will have reduced its real estate portfolio’s emissions by 50% on an absolute basis through direct decarbonization efforts at its owned properties under its operational control.

“We will continually monitor, review and adjust our plan for changes in external factors, which can include regulatory changes,” HOOP declared in its report. “As we approach 2030, we will assess our progress against our 2030 targets as part of our preparation for the next five- and 10-year periods.” It added that its performance against the interim targets will determine how it is tracking toward its goal of reaching net zero by 2050.

As a founding member of Climate Engagement Canada, HOOPP said it is expected to disclose in line with the recommendations of the Task Force on Climate-related Financial Disclosures.

“Climate change is a global issue that requires collective action, including enhanced and standardized reporting of information by companies,” HOOPP CIO Michael Wissell said in a release.

 

Related Stories:

Healthcare of Ontario Pension Earns 11.28% in 2021

HOOPP Boosts Real Assets as It Shrinks Bond Exposure

Canadian Pension CEOs Call for Increased ESG Disclosure

 

Tags: , , , , , , , , , , ,

«