Malaysia demands extradition of ex-Goldman Sachs partner Tim Leissner who funneled billions from the 1MDB sovereign fund to bankroll an extravagant lifestyle and buy a $10 million home while using forged divorce documents to hide his crimes.
Key Takeaways
- Malaysian authorities submitted an extradition request to the US Justice Department in August 2024 for Tim Leissner, with Interpol issuing a red notice in November.
- Leissner pleaded guilty in 2018 to conspiring to launder money and paying bribes in connection with $6.5 billion in fraudulent bond offerings.
- Part of the misappropriated funds were allegedly funneled into accounts controlled by his wife, Kimora Lee Simmons.
- Malaysia’s Prime Minister Anwar Ibrahim is seeking to reopen the $2.5 billion settlement with Goldman Sachs, pursuing additional compensation.
- Authorities fear Leissner might flee to Germany, his birthplace, before his repeatedly delayed US sentencing scheduled for May 29.
Multi-Billion Dollar Scheme Exposed
Malaysian authorities are aggressively pursuing former Goldman Sachs partner Tim Leissner as they seek justice for one of the largest financial frauds in history. Leissner, who helped orchestrate the massive 1MDB scandal that siphoned billions from Malaysia’s sovereign wealth fund, now faces extradition demands from the Malaysian government. The German-born banker has already pleaded guilty in the United States to conspiring to launder money and violating the Foreign Corrupt Practices Act, admitting to bribing officials across Malaysia and the Middle East to secure lucrative business deals for Goldman Sachs.
Leissner’s role was central in facilitating bond offerings totaling $6.5 billion for 1MDB, with significant portions of that money subsequently misappropriated through a complex web of offshore accounts and shell companies. Malaysian officials submitted a formal extradition request to the US Justice Department in August 2024, and Interpol issued a red notice for Leissner in November, signaling the international recognition of his alleged crimes. The banker’s sentencing in the US has been repeatedly delayed as he continues cooperating with American investigators, with the next court date scheduled for May 29.
Lavish Lifestyle Funded by Stolen Billions
Court records reveal that Leissner diverted substantial portions of the misappropriated 1MDB funds to finance an extraordinarily lavish lifestyle. Prosecutors have claimed that part of the stolen money was funneled into accounts controlled by his wife, Kimora Lee Simmons, the fashion designer and former model. During a 2022 US trial, Leissner admitted to forging divorce documents and being blackmailed into buying a $10 million home, demonstrating the extent of his fraudulent activities both professionally and personally. His testimony exposed how deeply corruption had infiltrated both the banking giant and Malaysian political establishment.
The scale of Leissner’s personal enrichment from the scheme remains staggering. He admitted to receiving substantial kickbacks for himself and his family as part of the fraudulent bond deals he helped arrange. While Goldman Sachs ultimately reached a $2.5 billion settlement with Malaysia in 2020, both Leissner and his former deputy Roger Ng were specifically excluded from that agreement, leaving them personally exposed to further legal action. Malaysian authorities have emphasized their determination to hold all responsible parties accountable, regardless of their wealth or international connections.
Malaysia’s Hunt for Justice Intensifies
Malaysian officials have expressed growing concern that Leissner might attempt to flee to Germany before facing full accountability for his actions. As his birthplace, Germany could potentially complicate extradition efforts if he manages to escape there before US authorities complete their proceedings against him. This fear has intensified Malaysia’s push for immediate action on their extradition request. Meanwhile, Roger Ng, Leissner’s former deputy who was convicted in the US, has already returned to Malaysia and is reportedly cooperating with local authorities, providing critical insights into the inner workings of the scheme.
Prime Minister Anwar Ibrahim has taken a hard line on the 1MDB scandal seeking not only the extradition of key figures like Leissner but also reopening discussions about the settlement with Goldman Sachs. Ibrahim’s government believes the $2.5 billion settlement inadequately addresses the damage done to Malaysia’s economy and reputation. While Leissner awaits his fate in the US, fugitive financier Jho Low considered another central figure in orchestrating the massive fraud, remains at large, further complicating Malaysia’s efforts to achieve full justice for this brazen theft of public funds that has damaged the nation’s financial standing.
