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Jury selection began Monday in the corruption trial of a former Goldman Sachs banker. Roger Ng is accused of money laundering the billions taken from the Malaysia 1MDB sovereign wealth fund. 

Ng, who was Goldman's head of investment banking in Malaysia. The former banker was arrested in Malaysia in November 2018. And he was extradited to the US in May 2019.

The COVID-19 techno-pandemic caused extensive delays in getting a trial date.

He is pleading not guilty to three counts of conspiracy to launder money. And to violate the Foreign Corrupt Practices Act, an anti-bribery law. He faces up to 30 years if he is convicted.

U.S. District Judge Margo Brodie questioned potential jurors in Brooklyn Federal Court to determine if they could be fair. And asked about any personal connections to people or entities who will be mentioned at the trial.

Tim Leissner, also implicated in the scandal, pleaded guilty in 2018 of conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act. 

 Leissner was a partner for Goldman Sachs’ Asia division. He also agreed to a forfeit fine of $43.7 million. He is scheduled to be sentenced in March. 

Leissner will testify against Ng. And they have both been barred from working in the securities industry.

Malaysia 1MDB funds diverted

Goldman Sachs was helping sell $6.5 billion of bonds for 1MDB, the sovereign development fund. This was a fund former Malaysian Prime Minister Najib Razak launched to encourage economic development.

Prosecutors allege Ng and Leissner worked with corrupt Malaysian financier Jho Low to divert $4.5 billion from the fund. Some of the money Goldman had helped raise through bond sales. Together the three conspired to misappropriate funds. and enjoy a lavish lifestyle.

Authorities claim that the conspirators looted the fund. At the same time, Goldman was paying more than $1.6 billion in bribes to officials in Malaysia and Abu Dhabi for 1MDB business.

Low, the third conspirator is on the run and remains at large. And international authorities are trying to find him.  

 The corruption surrounding 1MDB remains an international embarrassment for Goldman Sachs. And in 2020, they agreed to pay nearly $3 billion in connection to the scandal. Around $2.3 billion is a fine for violating the Corrupt Practices anti-bribery laws. The last restitution payment was made in June 2021.

Living in Luxury

The conspiracy netted the men a lavish lifestyle. Some of the pilfered money was even used to finance “The Wolf of Wall Street” a film starring Leonardo DiCaprio.

According to prosecutors Low used more than $8 million to purchase jewelry for celebrity Miranda Kerr. And to pay for an over-the-top Las Vegas birthday party where Britney Spears popped out of the cake.