Malaysian authorities have issued an Interpol red notice for former Goldman Sachs partner Tim Leissner as they pursue his extradition from the United States to face justice for his role in the massive 1MDB fraud that looted billions from the Malaysian people.
Key Takeaways
- Malaysia has formally requested the extradition of Tim Leissner from the US following his 2018 guilty plea in the 1MDB scandal.
- Leissner admitted to money laundering, bribery, and using embezzled funds to finance a luxury lifestyle that included buying a $10 million home.
- Malaysian Prime Minister Anwar Ibrahim wants to reopen the $2.5 billion settlement with Goldman Sachs, seeking additional compensation for the country.
- Interpol issued a red notice for Leissner in November, with Malaysian authorities concerned he might flee to Germany to avoid extradition.
- Leissner’s sentencing in the US has been repeatedly delayed and is currently scheduled for May 29.
Malaysia Demands Justice from Former Goldman Executive
Malaysian authorities are intensifying their efforts to bring Tim Leissner, a former partner at Goldman Sachs, back to Malaysia to face charges related to the 1MDB scandal. The Malaysian government submitted an extradition request to the US Justice Department in August 2024, signaling their determination to hold Leissner accountable in the country where his crimes caused tremendous financial damage. This move comes after Leissner pleaded guilty in US courts in 2018 to conspiring to launder money and paying bribes to secure business for Goldman Sachs.
The case has gained additional urgency with Malaysian officials expressing concern that Leissner might attempt to flee to Germany, his birthplace, which could significantly complicate extradition efforts. This concern prompted Malaysian authorities to work with Interpol, which issued a red notice for Leissner in November. The red notice serves as an international alert to law enforcement agencies worldwide to locate and provisionally arrest a person pending extradition.
A Web of Corruption and Luxury
The depths of Leissner’s corruption go beyond simple financial crimes. During a 2022 US trial, he admitted to forging divorce documents and being blackmailed into purchasing a $10 million home. Court records show that Leissner facilitated bribes to officials in Malaysia and the Middle East while misappropriating funds to support his extravagant lifestyle. The scandal represents one of the most egregious examples of government corruption in recent history, with billions of dollars stolen from Malaysia’s sovereign wealth fund.
Prosecutors have claimed that part of the misappropriated money was funneled into accounts controlled by Leissner’s wife, Kimora Lee Simmons, further illustrating how the stolen funds were used to support a lavish lifestyle while ordinary Malaysian citizens suffered the consequences of the massive theft. This brazen misuse of public funds has fueled outrage in Malaysia, where citizens have demanded accountability from all parties involved in the scandal.
A Global Financial Scandal
The 1MDB scandal represents one of the largest financial frauds in history, with Goldman Sachs facilitating bond offerings totaling $6.5 billion for the Malaysian state investment fund. A significant portion of these funds were subsequently stolen or misappropriated. While Goldman Sachs reached a $2.5 billion settlement with Malaysia in 2020, Leissner and his former deputy Roger Ng were specifically excluded from this agreement, leaving them exposed to separate legal actions.
Prime Minister Anwar Ibrahim is now seeking to reopen the settlement with Goldman Sachs, arguing that the bank’s involvement in the scheme merits additional compensation for the Malaysian people. This move highlights the ongoing impact of the scandal on Malaysia’s economy and political landscape. Meanwhile, Jho Low, considered a central figure in orchestrating the 1MDB fraud, remains a fugitive from justice, further complicating efforts to achieve full accountability.
Cooperation and Accountability
While Leissner awaits his repeatedly delayed sentencing in the US, now scheduled for May 29, Malaysian authorities have gained cooperation from his former deputy, Roger Ng. After being convicted in the US, Ng has returned to Malaysia and is providing valuable information to authorities. This cooperation is proving instrumental in Malaysia’s ongoing investigation, offering new insights into the mechanics of the fraud and potentially strengthening the case against Leissner.
The Malaysian government’s pursuit of Leissner represents a commitment to holding powerful financial figures accountable for crimes that impact ordinary citizens. The 1MDB scandal has had far-reaching consequences for Malaysia’s economy and international reputation, making this extradition request a matter of both justice and national sovereignty. As Malaysia continues to pursue Leissner, the case serves as a reminder of the devastating impact of corporate and government corruption on developing nations.
