Former Goldman Sachs Banker Tim Leissner Sentenced in 1MDB Scandal

Tim Leissner, a former Goldman Sachs banker, was sentenced to two years in prison by a judge in a New York court on Thursday, May 29, 2025. The sentencing comes after Leissner pleaded guilty in 2018 for his involvement in the multi-billion dollar scandal surrounding Malaysia's sovereign fund 1MDB.

During the sentencing, Judge Margo Brodie described Leissner's conduct as "brazen and audacious." While acknowledging his cooperation with the government, the judge stated that it "did not make up for the harm caused by the corruption at the highest levels in several countries." Leissner himself addressed the hearing, his voice reportedly breaking as he read a statement: "First and foremost, I offer my sincere apology to the people of Malaysia. I deeply regret my actions."

The 1MDB scandal involves Goldman Sachs's role in helping to sell $6.5 billion of bonds for 1MDB, a fund established by former Malaysian Prime Minister Najib Razak with the assistance of Malaysian financier Jho Low, for economic development purposes. U.S. and Malaysian authorities have alleged that $4.5 billion was siphoned away from the fund, with some funds diverted to offshore bank accounts and shell companies linked to Low, who is now a fugitive.

Leissner, who served as Goldman's former Southeast Asia chairman, became a U.S. government witness in the case following his arrest in 2018. He pleaded guilty to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, both tied to his role in the 1MDB scheme. He was permitted to remain free after agreeing to assist the government in its investigation and providing testimony against his former banking colleague, Roger Ng. Prosecutors noted in a filing that Leissner met with the government on numerous occasions, reviewing extensive documents and communications related to the 1MDB scheme and other matters, and had requested the court impose a sentence below the applicable guidelines range due to his cooperation.

Leissner informed the court that he had experienced significant personal losses in the wake of the scandal, including his freedom, family, and financial independence. He also mentioned suffering health issues, taking pills, and losing the will to live.

In a letter to the court dated May 21, Goldman Sachs stated that Leissner had deceived his colleagues for years, resulting in the only criminal case filed against the firm in its 156-year history. In 2020, Goldman Sachs paid a nearly $3 billion fine and arranged for its Malaysian unit to plead guilty in a U.S. court. The company also clawed back $174 million in executive compensation.

In related developments, Malaysia's top court in 2022 upheld a guilty verdict against Najib Razak for corruption and money laundering, sentencing him to 12 years in prison, a sentence later halved by a pardons board. Roger Ng, the former head of investment banking for Goldman in Malaysia, who had pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law, was convicted in Brooklyn and sentenced to 10 years in prison before being transported to Malaysia in 2023 to assist with probes there.