KUALA LUMPUR, Dec 18 — The US Securities and Exchange Commission (SEC) has named Datuk Seri Najib Abdul Razak as a recipient of kickbacks from bonds raised by former Goldman Sachs executive Tim Leissner for 1MDB, Malaysiakini reported.
The commission said this in a “cease and desist order” for proceedings against Leissner, after he made a settlement offer for the charges against him which includes a permanent ban from the securities industry.
Leissner had helped raise US$6.5 billion (RM26.9 billion) for 1MDB under the guise of supporting projects meant to benefit Malaysians, the SEC said in detailing the case background.
“Leissner and others instead planned and executed a scheme to misappropriate more than US$2.7 billion and distribute the money as bribes and kickbacks to government officials in Malaysia and Abu Dhabi,” the commission was quoted as saying.
“Including but not limited to Najib as well as to other participants in the scheme and their families, including Leissner.”
The commission said that Leissner was fully aware that Najib would be benefitting from a 2012 bond raising exercise dubbed “Project Maximus”.
Leissner also knew at the time that Najib, government officials from Abu Dhabi and 1MDB officials would receive money from the proceeds of Project Maximus that passed through various shell companies beneficially owned and controlled by himself, Jho Low and others, it added.
A close relative of Najib had also received misappropriated funds, the SEC was quoted as saying.
Project Maximus was the second of two bonds issued by 1MDB in 2012 during the Aabar BVI phase.
Najib received US$30 million under this phase, with a further US$681 million misappropriated from 1MDB during the Tanore phase in 2013, according to the US Department of Justice,
The Tanore phase is also known as Project Catalyze, which is mentioned by the SEC but without reference to Najib.
