Goldman Sachs was a leading wealth investor in Malaysia until just a few years ago before migrating out of the country, evidently with a lot of money, if you believe Malaysia. Investigations by the new finance minister of Malaysia now suggests that Goldman Sachs might have been involved in illicit activities while it was raking in money during its presence in the country, and the government is now demanding that Goldman Sachs pay up for the “scheme” that they were seemingly implementing. With the globalization of financial whistleblower cases, issues that have a United States nexus may be able to be litigated either under an SEC Whistleblower framework, Customs fraud or sometimes under the False Claims Act (FCA) itself as classical qui tam lawsuits.
Malaysian Government Demands Reimbursement from Goldman Sachs
Earlier this year, Lim Guan Eng, the new finance minister of Malaysia, announced that the local government is now seeking reimbursement from Goldman Sachs after they were found to have possibly been conducting an illicit scheme within the country.
Recently, a governmental scandal has unfolded within the Malaysian region, after billions of dollars disappeared with no apparent evidence where the funds went. No, this wasn’t a cryptocurrency pump and dump scheme, it was believed by Malaysia to be tied in with Goldman Sachs. The scandal caused the Malaysian government to suffer a significant loss and become larger in debt, which had a significantly adverse effect on the country’s local economy.
After researching the loss, the new finance minister of Malaysia, Lim Guan Eng, mentioned that they have been investigating the activities of financial powerhouse Goldman Sachs, who was a leading investor in the area. The investigation found evidence that the company might have been implementing illicit actions during their time in Malaysia, and some of these actions could potentially be linked to the current debt that the country finds themselves in. Several connections between the actions of Goldman Sachs and the recent scandal in the country has also been noted, according to Lim Guan Eng. Allegations however, are merely allegations, and the more definitive allegations of what the conduct was have yet to emerge.
While no definite statements have been published yet, the government is seeking reimbursement from Goldman Sachs in order to recover from the economic damage sthat they had suffered through the actions that they believe were caused by Goldman Sachs.
Several parties have already been interviewed in order to gain more insight into the matter, but parties have thus far denied their knowledge of any illicit activities. The bank that was used by Goldman Sachs made several millions of dollars from the transactions performed by the company, but also advised several media publications that they had no knowledge of any particular illicit activity by the client.
Goldman Sachs made millions, if not billions, of dollars in Malaysia, and recent investigations have led to allegations against Goldman Sachs in which Malaysia is demanding compensation. Is this another example of corporate corruption or perhaps government mismanagement or both? It’s too early to tell. Perhaps this is an example of violations of the FCPA Foreign Corrupt Practice Act that could dovetail into an SEC whistleblower complaint or perhaps it’s something else. Individuals with information about the events are encouraged to call a whistleblower law firm to share their information to see if it’s actionable.