A jury in the U.S. District Court for the Eastern District of New York on Friday convicted former Goldman Sachs chief executive Ng Chong Hwa, also known as Roger Ng, on corruption charges related to Malaysian development fund 1MDB . The decision came after an eight-week trial.
Ng was indicted in 2018. The jury found Ng guilty of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to several foreign officials in Malaysia and the Emirates United Arab Emirates, conspiring to violate the FCPA by circumventing Goldman Sachs internal accounting controls and conspiring to launder billions of dollars related to this scheme. Ng worked for Goldman Sachs from 2005 to May 2014. He faces up to 30 years in federal prison.
Regarding the verdict, U.S. Attorney Breon Peace said:
The scheme was massive in its scale – the accused and his co-conspirators embezzled billions of dollars from the fund. His execution was brazen – Ng secured lucrative business for his employer by bribing a dozen officials in Malaysia and Abu Dhabi. And he was obscene in his greed. Today’s verdict is a victory not only for the rule of law, but also for the people of Malaysia whom the fund was meant to help, by raising money for projects aimed at developing their country’s economy. The defendant and his cronies saw 1MDB not as an entity to do good to the Malaysian people, but as a piggy bank to enrich themselves with heaps of money embezzled from the fund.
1MDB is a Malaysian sovereign wealth fund owned and controlled by the state. This fund was established to pursue investment and development projects for the economic benefit of Malaysia and its people.
A Malaysian court convicted former Malaysian Prime Minister Najib Rajak of money laundering, abuse of power and criminal breach of trust related to the fund in 2020. On appeal, a Malaysian appeals court upheld Rajak’s conviction in December 2021. Goldman Sachs settled with the country for $3.9 billion in 2020 for its part in the 1MDB scandal.