DESPITE Goldman Sachs CEO David Solomon’s apology to Malaysians over the its role in the 1Malaysia Development Bhd scandal today, the bank appears to be going all out to transfer any blame by discrediting an indicted former employee, the New York Times reported.

The report quoted insiders close to case as saying that in statements to the authorities, the bank’s executives and lawyers were painting Tim Leissner, who once headed Goldman Sachs’ Southeast Asian unit, as a master con man and dubious rogue employee.

This appeared to be aimed at shielding current Goldman Sachs officials, including its chief executive at the time, for their role in helping win Malaysian business, a relationship that led to the bank amassing US$600 million (RM2.4 billion) in fees. By discrediting Leissner, Goldman hopes to reduce its legal and reputational liability, the report said.

It cited a November meeting between the bank and federal prosecutors in Washington in which a PowerPoint presentation sought to paint Leissner as deceitful. One slide purportedly showed Leissner may have been briefly married to two women at the same time.

Another slide included a photo Leissner praying with other men, as well as images of a government-issued identification card in which he described himself as Muslim.

It is believed a similar presentation was made to bank regulators.

However, the bank has yet furnish any evidence to back their claims.

The scorched-earth tactics against the former star banker reflects just how worried Goldman is about the criminal investigations into its role in the theft of at least US$2.7 billion from 1MDB, the report said. 

Leissner had pleaded guilty to violating US anti-bribery and money-laundering laws and agreed to pay US$43.7 million in restitution of ill-gotten gains. 

At a conference call with analysts after reporting the investment bank’s fourth-quarter earnings yesterday, Soloman had said: “It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government.”

Goldman Sachs arranged three bond sales in 2012 and 2013 to fund 1MDB, raising US$6.5 billion to supposedly attract foreign investments. – January 17, 2019.