Malaysia prosecutors will charge against three Goldman Sachs units as it allegedly misappropriated the fund.
The US bank is accused of misleading investors when it made US$ 6.5 billion of bond sales for 1MDB with acknowledging that the fund would be diverted. Prosecutors are seeking fines in over US $2.7 billion diverted from the proceeds, and the return of US $600 million received by Goldman.
1MDB is a centre of global investigations. The United Stated prosecutors accused that US $4.5 billion was gained from the Malaysia investment fund.
The breaking news has put a bomb in the Malaysia politics. It also raised lifetime bans against Goldman bankers like Andrea Vella and Tim Leissner in the financial industry.