The Federal Reserve Board of Governors has barred former Goldman Sachs Group Inc. investment bankers Tim Leissner and Roger Ng from working in the banking industry because of their alleged involvement in illegally diverting funds from Malaysian state investment fund1Malaysia Development Bhd.
The Fed said Tuesday Mr. Leissner, the former head of Goldman’s Southeast Asia business, agreed to his ban from the industry and has been fined $1.42 million.
In 2012 and 2013, Messrs. Leissner and Ng worked on bond offerings for the sovereign wealth fund, known as 1MDB, the Fed said. Money that was diverted from the fund was used to bribe government officials and for the “conspirators’ personal benefit,” the Fed said in a statement.
The New York-based investment bank raised $6.5 billion for 1MDB, and authorities have alleged $2.7 billion of funds were stolen.
.. Mr. Leissner pleaded guilty last year to U.S. charges of conspiracy to launder money and violate antibribery laws. He is due to be sentenced June 28. The attorney general in Malaysia filed charges against the former Goldman banker last year.