Goldman Sachs drawn into prosecution of vast international financial fraud

The lengthy court filings by prosecutors in Brooklyn paint an ugly picture for Goldman, which was instrumental in raising money for the fund, 1Malaysia Development Berhad, or 1MDB

Goldman Sachs is facing one of the most significant scandals in its history, a multibillion-dollar international fraud that investigators say was masterminded by a flamboyant financier with a taste for Hollywood and carried out with help from the Wall Street firm’s bankers.

Federal prosecutors on Thursday unveiled a guilty plea from one former Goldman Sachs banker and announced bribery and money laundering charges against a second banker, as part of an investigation into the alleged embezzlement of billions of dollars from a state-run investment fund in Malaysia. Prosecutors also brought charges against the Malaysian businessman they believe stole some of