Goldman Sachs Scandal: Tim Leissner's Prison Sentence and the 1MDB Scheme

Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison for his involvement in the 1MDB scandal, where over USD 4.5 billion was stolen from a Malaysian state fund. Leissner apologized for his role in the scheme that financed luxurious purchases and led to political turmoil.

In a significant ruling, former Goldman Sachs banker Tim Leissner received a two-year federal prison sentence for his integral role in a USD 4.5 billion scheme, targeting Malaysia's state investment fund, 1MDB. The sentencing unfolded Thursday in Brooklyn federal court.

Leissner expressed remorse for his actions, acknowledging the scheme's impact on Malaysia as the largest fraud in history. Misappropriated funds, initially meant for Malaysia's development, were instead laundered to finance lavish lifestyles, including extravagant parties and financing Hollywood blockbuster 'The Wolf of Wall Street.'

While Leissner's cooperation with authorities granted him leniency, the scandal's repercussions were vast, contributing to the downfall of Malaysian Prime Minister Najib Razak. Leissner, who cooperated with the investigation, will serve his sentence beginning September 15 at a requested facility in Otisville, New York.

(With inputs from agencies.)