NEW YORK: Two former Goldman Sachs bankers sought advice from a feng shui master in 2016 on how to handle a U.S. investigation into the looting of funds from Malaysia’s 1MDB sovereign wealth fund, one of the bankers, Tim Leissner, testified on Tuesday (Mach 1).
Leissner was the prosecutors’ star witness at the Brooklyn federal court trial of Roger Ng, 49, who had pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law. Leissner, 52, pleaded guilty to similar charges in 2018 and agreed to cooperate with the government.
Leissner testified that after the FBI served him with a subpoena in February 2016, Ng and his wife, Hwee Bin Lim, suggested he consult a feng shui master they trusted to ask whether they “would be in trouble.”
Ng had left Goldman in 2014, Leissner said.
The charges stem from one of the biggest financial scandals in history. Prosecutors say Goldman from 2009 to 2014 raised US$6.5bil for 1MDB through bond sales and earned US$600mil in fees, but that US$4.5bil was diverted to officials, bankers and their associates through bribes and kickbacks.
Leissner testified that he and Ng played a key role in that scheme and that he personally transferred US$35mil in kickbacks to Ng, Goldman’s top banker for Malaysia. Leissner oversaw the firm’s Southeast Asia team.
He said on Tuesday that Ng and Lim attended his meeting with the feng shui master at a Hong Kong hotel, where the master said he would have trouble with authorities over the next five years but that the problems would later resolve themselves.
“I was in a panic,” Leissner said. “They felt this would give me comfort and they wanted to show their support.”
At the end of the meeting, Leissner said he, Ng and Lim concocted a “cover story” involving Lim and Leissner’s then-wife, Judy Chan, to justify the $35mil in funds.
The testimony could prove problematic for Ng, who argued that the money prosecutors called ill-gotten gains was actually derived from a legitimate business venture between the two men’s wives.
Ng’s lawyer had said he played no role in the scheme beyond introducing Leissner to an intermediary close to the Malaysian government, and says Ng later warned Goldman not to trust the intermediary.
Lawyers for Ng were expected to call Lim to testify in her husband’s defense. They began cross examining Leissner, who had already testified for five full days, on Thursday (March 24) morning.
Goldman in 2020 paid a nearly US$3bil fine and arranged for its Malaysian unit to plead guilty in U.S. court. – Reuters