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NY Regulators Shine The Light On Goldman’s 1MDB Dealings


Goldman Sachs is being pressed by NY’s financial service regulators for more information regarding its dealings with Malaysian investment fund 1MDB—which is being investigated for its alleged $1B corruption scandal.

The US Justice Department is working to seize $1B in illegally acquired assets from 1MDB—including some high-end real estate properties in New York, Los Angeles and London—in addition to royalties from the 2013 Wolf of Wall Street starring Leonardo DiCaprio.

Specifically, the New York State Department of Financial Services is demanding details on Goldman’s involvement in underwriting bond deals for 1MDB, requesting trading records and documents backing up to 2013, the Wall Street Journal reports. Authorities are looking into whether Goldman broke the law after failing to sound the alarm when proceeds from 1MDB bond sales disappeared into offshore accounts.

Assets likely to be seized include a Beverly Hills mansion that features a 120-foot-long pool. In New York, it gained Manhattan condos, including a $35M seven-room, five-bathroom duplex overlooking Central Park. Other assets include some very costly artwork by Vincent van Gogh and Claude Monet, in addition to a $35M jet. [WSJ]