U.S. investigators probing a troubled Malaysian state investment fund have subpoenaed Goldman Sachs' former chairman for Southeast Asia, the Wall Street Journal reported, citing a person familiar with the matter.
The banker, Tim Leissner, who resigned from Goldman last month after the bank placed him on leave, worked on several large bond deals for deeply indebted 1MDB, or 1Malaysia Development Berhad, netting hundreds of millions in fees for the bank, the WSJ said.
Goldman placed Leissner on leave after reviewing his emails and finding that he allegedly sent an unauthorized and potentially inaccurate reference letter for an individual at another financial firm, the WSJ reported, citing a person familiar with the matter. The person told the WSJ that the letter wasn't related to Leissner's work with 1MDB and Goldman found nothing wrong with his dealings with the fund.
Both the FBI and the U.S. Justice Department are investigating allegations of money laundering and corruption at 1MDB, including examining Goldman's role, the WSJ said, citing people familiar with the matter.
Those people said the probe is gathering information and there isn't a suggestion of wrong-doing by Leissner or the bank, the WSJ said.
According to the report, Goldman declined to comment. 1MDB has repeatedly denied wrong-doing, often saying that the WSJ is repeating "disproven allegations."