Prosecutors seek court change for Goldman Sachs's 1MDB trial

Kuala Lumpur: Malaysian prosecutors Tuesday sought a court change for Goldman Sachs's criminal trial over its role in the alleged multibillion-dollar ransacking of state investment fund 1MDB.

Hisyam Teh Poh Teik, a lawyer for Goldman, said prosecutors informed the magistrate court now hearing the case that they had applied to transfer it to the high court. He said the lower court scheduled an update on the transfer to be heard Dec 16.

Prosecutors didn't give any reasons for the transfer but a move to a higher court usually reflects the seriousness of the case.

Malaysian and U.S. prosecutors allege bond sales organised by Goldman Sachs for 1MDB provided one of the means for associates of former Malaysian leader Najib Razak to steal billions from a fund that was ostensibly set up to accelerate Malaysia's economic development.

Three Goldman subsidiaries and two former executives were charged in December for alleged breaches of securities laws including making false, misleading statements to investors.

Another 17 current and former directors at Goldman were charged in August in an expanded sweep as the alleged crime occurred under their watch.

Hisyam declined to comment on the allegations. Goldman has not entered pleas to the charges.

In January, Goldman CEO David Solomon apologized to the Malaysian people for former banker Tim Leissner's role in arranging the bond sales for 1MDB. Solomon has said the investment bank conducted due diligence but was misled by Leissner and former Malaysian government officials.

Leissner, who headed Goldman's operations in Southeast Asia, pleaded guilty in the US last year to money laundering conspiracy and conspiring to violate foreign bribery laws.

Malaysia's government has said the apology was insufficient and that Goldman must pay USD 7.5 billion as compensation.

Najib set up 1MDB when he took office in 2009, but it accumulated billions in debts and US investigators allege at least USD 4.5 billion was stolen from the fund and laundered by Najib's associates.

Public anger over the alleged corruption contributed to the shocking election defeat of Najib's long-ruling coalition in May 2018.