Malaysia has filed criminal charges against 17 current and former managers of units of Goldman Sachs Bank in a multi-billion-dollar corruption probe linked to the state development fund NMDP, Attorney General Tommy Thomas said on Friday.
Goldman Sachs faces scrutiny over its role in helping raise funds through bond issuance of the fund, which in turn faces corruption and money laundering investigations in at least six countries.
The prosecutor said the charges were brought under a section of the Malaysian Capital Services and Markets Act that held certain executives responsible for any wrongdoing they had committed.
"Detainees and criminal fines will be signed for the defendants because of the gravity of the fraud and fraud scheme to take away billions of bond revenues," he said in a statement.
He pointed out that the defendants include Richard Knud, CEO of Goldman Sachs International, Michael Schrwood, former vice president of "Goldman Sachs Group" and co-CEO of Goldman Sachs International.
The case tarnished the reputation of the US Goldman Sachs Bank on suspicion of contributing to the alleged embezzlement, and contributed to the dismissal of former Prime Minister Najib Abdul Razzaq.
Goldman Sachs said the accusations were false. "We believe the accusations announced today, in addition to those against three Goldman Sachs entities in December last year, are incorrect, and we will provide a strong defense," a Hong Kong spokesman told Reuters. .
The bank consistently denies any wrongdoing, and says some members of the former Malaysian government, the NMDB fund have lied to Goldman Sachs, outside advisors and others about the use of financial transaction revenue.
Malaysia has filed criminal charges against Goldman Sachs and two former US bank employees in connection with the OneMDB fund.
The US Department of Justice is investigating the bank for its role as guarantor and tender for bond offerings.