NEW YORK (Reuters) – Government probes into Goldman Sachs Group Inc’s dealings with the Malaysian sovereign wealth fund 1MDB may still result in “significant fines, penalties and other sanctions,” the Wall Street bank said in a regulatory filing on Friday.
Goldman said it is cooperating with the U.S. Department of Justice and other regulators examining 1MDB matters in its quarterly financial filing.
On Thursday, U.S. prosecutors filed criminal charges against two former Goldman bankers and a Malaysian financier over the alleged theft of billions of dollars from the fund.
The government of former Malaysian Prime Minister Najib Razak set up 1Malaysia Development Berhad, or 1MDB, in 2009. An estimated $4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014, the U.S. Justice Department has alleged.
Najib has consistently denied wrongdoing in connection with alleged graft involving 1MDB.
Reporting by Lauren Tara LaCapra