Ex-Goldman Sachs banker Ng pleads not guilty to 1MDB charges

Ex-Goldman banker extradited to US to face 1MDB charges

Ex-Goldman banker extradited to US to face 1MDB charges

Former Goldman Sachs Group Inc banker Roger Ng pleaded not guilty to criminal charges linked to a multibillion-dollar scandal at the Malaysian state investment fund 1MDB in an appearance at federal court in NY yesterday.

"It is likely that Ng's extradition will have to be postponed because priority is for his cases in Malaysia", he said.

Malaysian business newspaper The Edge, citing an unidentified source, reported Malaysian authorities and the US Department of Justice had worked out a deal and Ng was now being held by the DoJ.

Vast sums were allegedly looted from 1MDB in a fraud said to have extended to the former Malaysian leader Najib Razak and his associates, triggering an global outcry and embroiling one of the world's biggest investment banks in a financial scandal. Since losing power, Najib has been hit with dozens of charges linked to the scandal and last month went on trial. He denies the charges.

Ng, who left Goldman Sachs in 2014, faces up to 30 years in prison if he is convicted of the three charges against him in the United States, based on alleged violations of the Foreign Corrupt Practices Act.

On Monday, Attorney-General Tommy Thomas said Ng was handed over to the U.S. under a temporary surrender warrant signed by Home Minister Tan Sri Muhyiddin Yassin, who agreed that Ng be extradited for 10 months to face charges there first.

But the deal broke down shortly after when Kuala Lumpur decided that Ng would be handed over to the USA only after his trials at the Malaysian courts were completed.

In a statement through his attorneys today, Low pointed out that this is despite the Malaysian government's differences with its USA counterparts on various fronts.

Mr Thomas noted that Ng shall be returned to Malaysia to face charges as soon as the proceedings in the U.S. are concluded, adding that the period of temporary surrender may be extended upon mutual agreement between the two governments.

Ng was charged in Kuala Lumpur with four counts of abetting the bank to provide misleading statements in the offering prospectus for 1MDB bond sales.

Ng, who was accused by the DOJ of conspiring to launder money and bribe government officials in Malaysia and Abu Dhabi, also was also slapped with multiple charges in Malaysian court.

Goldman's role is under scrutiny as the Wall Street bank helped arrange $6.5 billion in bonds for 1MDB. USA authorities estimate that about $4.5bn was misappropriated by senior 1MDB officials and their associates between 2009 and 2014, including some of the funds that Goldman Sachs helped to raise.

Ng was earlier today charged at the NY federal court over his involvement in the multibillion-ringgit 1MDB scandal. The US is also keen to have custody of him as part of a wider initiative for DOJ to build its case against Goldman Sachs.