(202) 887-9363

We've written before about Malaysia's 1Malaysia Development Berhad (1MDB) fund and the scandals associated with it. The corruption from the scandal just keeps ensaring more people and organizations through out the world. Recently Tim Leissner, former Goldman Sachs Chairman in Southeast Asia pleaded guilty to money laundering conspiracies in connection with the 1MDB fund. Several other employees were also implicated in that plot.

More recently Goldman Sachs said in a filing with the SEC that some equity based pay awards given to executives and others could be subject to clawbacks depending on the results of futher investigations into 1MDB. Goldman Sachs, which was a major fundraiser for the fund has been charged by Malaysia's attorney general with with helping to "dishonestly misappropriate" money from the fund. Other countries are also investigating the company. The firm has said that it is cooperateing with the "DOJ and all other governmental and regulatory investigations relating to 1MDB."

Don't assume that just becasue a big bank or another sophisticated investor is involved in an investment that it's free from corruption. Corruption can be anywhere. When corrupt activities come to light your investment may dry up. You may even be dragged into ongoing investigations. Don't make a major investment without first conducting professional Due Diligence on your investment. Call Smith Brandon International for a free consultation.

What Others Are Saying

“Excellent report as always. We truly found it extremely helpful.”

DirectorEuropean Hotel Group

“As always, perfect. The client on the project in Taiwan was most pleased.”

DirectorInvestigative Firm

“ definitely helped [our division] and the whole company improve ... so [we] can make better informed decisions regarding our strategy.”

Strategy DirectorMajor Infrastructure Firm

“The reporting you just furnished us has helped us avoid a major mistake in looking at the potential new partner ... we are very pleased.”

VP for ComplianceInternational Construction Company

“Many thanks for your reporting and willingness to talk with us about what it means. You are correct, we do have an issue and we will take corrective action immediately.”

Corporate CounselInternational Pharmaceutical Company
Prev Next