Skip to main content

David Solomon’s Honeymoon Comes To Abrupt End

Could this ex-partner’s guilty plea not have come, say, a month and a day ago?
  • Author:
  • Updated:

DJ D-Sol had so much planned to celebrate his accession to Lloyd Blankfein’s chair, and you can be sure he expected the party to last longer than a month. Unfortunately, fellow party-planner-extraordinaire and former aggrieved Goldmanite Tim Leissner had other plans for this one-month anniversary of Goldman Sol.


Tim Leissner, a former partner for Goldman in Asia and once among its highest paid employees, pleaded guilty to conspiracies to launder money and violate foreign antibribery laws for his role in helping raise money for the fund, known as 1Malaysia Development Bhd, or 1MDB….

The Leissner guilty plea is the biggest black eye for a Goldman partner since 1989, when executive Robert Freeman was led off the trading floor in handcuffs, later convicted of a crime related to insider trading. The charges will test the bank’s new CEO, David Solomon, who was running the investment-banking division at the time Goldman underwrote the Malaysian bonds and was ultimately Mr. Leissner’s boss.

Of course, a scandal of this scale—$2.7 billion allegedly skimmed from the $6.5 billion Goldman helped 1MDB raise and spent on diamonds and prime ministers and a weekend at the Venetian and movies starring Leo DiCaprio—is rarely the work of just one man, even if that man is married to Kimora Lee Simmons. In this case, Brooklyn prosecutors say it was the work of three. Unfortunately for Solomon, one of the others is also a former Goldman banker, while an unindicted co-conspirator is still on the payroll. Even more unfortunately, those prosecutors are looking into whether it can at “Goldman, Sachs & Co.” to the list of defendants.

Roger Ng, the other former Goldman banker, and Mr. Low, who allegedly masterminded the fraud, were indicted on three conspiracy counts to violate foreign antibribery laws and launder money….

Prosecutors from the U.S. attorney’s office in the Eastern District of New York have been investigating whether Goldman violated any laws in its role arranging the 1MDB bond sales, The Wall Street Journal previously reported….

Goldman on Wednesday placed another senior banker on leave after he was cited as a key player in the 1MDB dealings. Andrea Vella, who was until recently Goldman’s co-head of investment banking in Asia, isn’t identified by name in the charging documents, which refer to an “Italian national” as a co-conspirator. People familiar with the matter confirmed his identity.

Justice Department Charges Ex-Goldman Bankers in Malaysia 1MDB Scandal [WSJ]


Goldman Sachs Balds 2

(Taking Back) Bonus(es) Watch: Current, Former Goldman Sachs CEOs

$5.1 billion in fines demands a $174 million decrease in the comfort of millionaires.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Oh, Just Get To The Serial Bigamy Already

Before we get to the juicy stuff at the ex-Goldman banker 1MDB trial, we’ve got to hear about all the fraud.


Ex-Goldman Partner As Good At Forging Divorce Papers As He Was At Bribing Malaysian Officials

How one man was married to three women at the same time, and how it may sink the case against his old friend.


David Solomon Goes The Full Bart Simpson In Year-End Message To Goldmanites

On the subject of 1MDB scandal, DJ D-Sol wants everyone to rest easy next week.

By Beyond My Ken (Own work) [GFDL or CC BY-SA 4.0-3.0-2.5-2.0-1.0], via Wikimedia Commons

Was Everyone At The SDNY Sick The Day They Taught Discovery At Law School?

There is a pattern developing, and not a good one if the Justice Department ever wants another Wall Street fraud conviction to stick.