In their telling of the 1MDB scandal—you know, the one with the diamonds and lavish vacations and former and now-indicted Malaysian prime ministers and Leonardo DiCaprio—federal prosecutors in Los Angeles were in remarkable accord with Goldman Sachs: The whole sordid tale was the work of former Goldman banker and thrower of great wedding receptions Tim Leissner, who was as good at financing billion-dollar scams as he was hiding them from his superiors at the bank. Unfortunately for both, federal prosecutors in Brooklyn want to tell it a different way, possibly working with a co-author who Goldman once kept from moving a little closer to his wife (and clients on the other side of the Pacific).
The charges that were drawn up against Mr. Leissner included an accusation that he had provided misleading information to Goldman, something he was previously sanctioned for by securities regulators in Singapore.
The prosecutors in Brooklyn, who joined the investigation about two years ago, objected to the filing of charges against Mr. Leissner, which they said would hamper their investigation into Goldman’s possible role in the scandal, the people said. The worry was that accusing Mr. Leissner of tricking Goldman could undermine their case by casting the firm as a victim, one of the people said….
The prosecutors in Brooklyn are now considering their own criminal charges against Mr. Leissner, which they hope will motivate him to cooperate and to provide more information about Goldman’s overall role and the roles played by others at the Wall Street firm, the people said.