Former Goldman Sachs bankers charged for Malaysian state fund embezzlement

Two former Goldman Sachs bankers and Malaysian financier Jho Low have been hit with criminal charges in the US for the alleged embezzlement of billions of dollars from Malaysian sovereign development fund 1MDB.

The US Department of Justice said former Goldman partner Tim Leissner had pleaded guilty to conspiracy to launder money, and agreed to pay $43.7m (£33.6m).

Roger Ng, the other Goldman banker, was arrested in Malaysia earlier today and is expected to be extradited to the US.

Meanwhile a financier and Hollywood mogul, known as Jho Low, remains at large. He had previously denied charges filed against him in Malaysia, arguing that he would not receive a fair trial in the country.

An arrest warrant has been put out for Low, whose Malaysian passport has been revoked. Malaysian authorities have also applied for an Interpol red notice, asking for assistance from Indonesia, India, the United Arab Emirates, Myanmar, China and Hong Kong.

The Department of Justice alleged that between 2009 and 2014, an estimated $4.5bn was misappropriated and fraudulently diverted from 1MDB as it raised money to fund its projects.

According to court filings, Low, Ng, Leissner and others conspired to bribe Malaysian and Abu Dhabi officials, including at 1MDB, to retain bond deals for the Financial Institution.

Goldman Sachs and former Malaysian prime minister Najib Razak, whose government set up 1MDB, have both consistently denied any wrongdoing in connection with the trio's crimes.