Two former Goldman Sachs execs banned permanently from banking for alleged scheme to divert billions

Two former senior employees of a Wall Street giant were prohibited permanently from participating in the affairs of a bank Tuesday after participating in an alleged scheme to divert billions from a Malaysian sovereign wealth fund.

The Federal Reserve said it prohibited former Goldman Sachs senior investment bankers Tim Leissner and Ng Chong Hwa (also known as Roger Ng) from the banking industry for their participation in the alleged scheme. The central bank said Leissner and Ng – who employed by foreign subsidiaries of The Goldman Sachs Group, Inc. – coordinated bond offerings arranged by Goldman for 1Malaysia Development Berhad (1MDB) in 2012 and 2013. The funds diverted from 1MDB were then used for the conspirators’ personal benefit and to bribe certain government officials in Malaysia and Abu Dhabi.

The Fed said Leissner – who was also fined $1.42 million and consented to the permanent ban – pleaded guilty in August to criminal charges brought by the Justice Department for conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to commit money laundering. Ng was indicted in October on similar charges, the Fed said.

Federal Reserve Board permanently bars two former employees of The Goldman Sachs Group, Inc. from the banking industry