Tim Leissner, the previous Goldman Sachs banker who performed a central position within the notorious 1MDB scandal, was sentenced Thursday to 2 years in jail for serving to orchestrate one of many largest monetary crimes in historical past.
Leissner, who pleaded responsible in 2018 to conspiracy fees, admitted to working with fellow banker Roger Ng and Malaysian financier Jho Low to siphon billions from Malaysia’s sovereign wealth fund, 1Malaysia Growth Bhd.
The sentencing, delivered by US District Choose Margo Brodie in Brooklyn federal court docket, marked a serious milestone within the yearslong investigation into the worldwide bribery scheme that led to billions in penalties for Goldman Sachs and drew intense scrutiny from US and Malaysian authorities.
The scandal, which helped fund extravagant spending sprees and even the manufacturing of the Hollywood hit “The Wolf of Wall Street,” additionally dragged Leissner’s private life into the highlight — most notably his high-profile marriage to his now-estranged vogue mogul spouse Kimora Lee Simmons.
Leissner, a German-born former companion and chief of Southeast Asia operations at Goldman, admitted to mendacity to colleagues, creating pretend electronic mail accounts and forging paperwork — together with to deceive Simmons about his marital standing.
Prosecutors mentioned Leissner personally obtained greater than $50 million in kickbacks as a part of a scheme that noticed over $2.7 billion embezzled from 1MDB.
The funds had been allegedly used to bribe officers in Malaysia and Abu Dhabi, fund lavish existence, and finance luxurious belongings like actual property, tremendous artwork and the Martin Scorsese-directed “Wolf of Wall Street.”
Throughout Thursday’s listening to, Choose Brodie acknowledged Leissner’s cooperation with the federal government however mentioned it didn’t excuse the big hurt induced.
“In the end your cooperation did not completely make up for the harm and devastation that you knowingly caused,” she mentioned.
Leissner, who had confronted as much as 25 years in jail, will report to start his sentence on Sept. 15.
Leissner had requested to keep away from jail altogether, saying in a letter to the court docket that his crimes had value him his profession, marriage, and time along with his kids.
“If I could turn back time, I would and I would do so without hesitation,” he mentioned by way of tears at sentencing.
“Unfortunately, that is not possible.”
Federal prosecutors credited Leissner with offering essential testimony that helped convict his former colleague Ng, who obtained a 10-year sentence.
“There was no testing of the water here,” Assistant US Legal professional Drew Rolle mentioned. “It was fully jumping in.”
Regardless of his cooperation, Goldman Sachs urged the decide to impose a harsh sentence.
In a strongly worded letter, Goldman common counsel Kathryn Ruemmler wrote final week that Leissner “extensively lied to and deceived many people” and “has never acknowledged, let alone accepted responsibility for, the extraordinary harm and reputational damage that he caused.”
The financial institution, which paid over $5 billion in penalties associated to 1MDB, additionally famous that Leissner has refused to repay $20.7 million in restitution ordered by a federal decide final 12 months.
Leissner’s lawyer, Henry Mazurek, mentioned his shopper has confronted severe threats as a consequence of his cooperation, together with break-ins, slashed tires, and threatening messages.
“He will always be looking over his shoulder for the rest of his life,” Mazurek advised the court docket on Thursday.
Malaysia has issued an Interpol crimson discover for Leissner’s arrest and is in search of his extradition.
In the meantime, Jho Low stays a fugitive.
A Goldman spokesperson declined to remark.
