Riza Aziz has been accused of using stolen funds to finance the film starring Leonardo DiCaprio.Read more
1MDB corruption scandal
Senior US Department of Justice (DoJ) officials are considering a requirement that Goldman Sachs plead guilty over its role in the Malaysian 1MDB corruption scandal, as part of a potential settlement, sources have told the FT.
If this comes to pass, it will be the toughest penalty that the DoJ could impose on the bank.
Goldman spokesman Jake Siewert told the FT: “We do not believe that such a charge would be warranted by the facts of the case or the law, particularly because senior management was unaware of the criminal activity by [former Goldman Sachs banker] Tim Leissner and his associate who took extraordinary efforts to hide their part in the illegal scheme from management, compliance, and legal functions at the firm.”
More on the 1MDB scandal - a superyacht allegedly bought with money stolen from the fund will be sold to $126m (£95.9m).
The sale of the yacht to casino operator Genting Malaysia marks the country's largest recovery yet of 1MDB cash.
Equanimity - decked out with a 20m swimming pool, spa and sauna, movie theatre and helipad - has been moored off the coast of Malaysia for the past five months, on show for potential buyers.
Goldman Sachs has been issued with a show-cause letter form Malaysia's regulator over the 1Malaysia Development Berhad (1MDB) scandal.
A show-cause letter usually requires the recipient to show why they should be subject to disciplinary action.
"We have issued a show cause to Goldman Sachs," Syed Zaid Albar, chairman of the Malaysia Securities Commission, said.
There was no immediate response from Goldman Sachs- which helped raise $6.5bn (£5bn) for the Malaysian development fund advising on three bond offerings in 2012 and 2013. It has consistently denied wrong-doing.