Goldman Sachs To Receive $2 Billion Fine From DOJ
1MDB is a Malaysian government fund that was a client of Goldman Sachs. However, while the fund was a client for the firm, employees of Goldman siphoned off money raised through the fund into their own personal accounts.
Th $2 billion fine would be in addition to continued oversight of Goldman Sachs’ operations in order to ensure that compliance procedures were as stringent as need be. The specifics of the deal are still undecided and could be finalized early 2020.
The Justice Department is the branch of the U.S. government overseeing this deal. However, even in Goldman Sachs finalized a deal with the Justice Department, that will not impact the ongoing investigation being led by the Malaysian Government.
Goldman Sachs is accused of ignoring signs of theft in order to continue charging large fees for raising funds through 1MDB. These fees are said to have reached $600 million. $6.5 billion was raised for 1MDB. However, a large portion of this money was stolen by 2 bankers working for Goldman Sachs and a Malaysian government advisor.