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Hip hop’s original first lady Kimora Lee Simmons current husband Tim Leissner has been charged with money laundering , after the theft of billions of dollars from 1MDB, a Malaysian sovereign wealth fund. Leissner is a former Goldman Sachs partner in Asia who has plead guilty and agreed to forfeit $43.7 million.
The Breakdown You Need to Know
High finance and hip hop fashion royalty have collided on U.S. prosecutors desks. However, Leissner didn’t act alone in the scheme that has now put one of the world’s most formidable financial institutions, right in the nucleus of what may be the biggest bank fraud in history. He was subpoenaed by the U.S. Justice Department on charges of conspiracy to violate the Foreign Corrupt Practices Act, a federal law targeting official bribery abroad.
The two other people involved include Roger Ng, who is also a former Goldman employee and Malaysian businessman Jho Low. Around $4.5 billion was incorrectly managed from 1MDB fund officials and their associates, which include Leissner along with his accomplices between 2009 and 2014, the DOJ has alleged. Court documents highlight more than $200 million alone went to Leissner and another alleged co-conspirator.
Just like a scene from a rap video, prosecutors said Leissner, Low and Ng used the funds for personal benefits, including buying luxury U.S. properties, yachts, art as well as paying bribes. Allegedly, the three men laundered the fraudulent proceeds through U.S. banks.
Once the charges were initially filed in 2017, Kimora spoke out and said she and her husband’s finances aren’t connected when it comes to her business endeavors, according to WWD. “I fund my own business. So all my money, not that I want to say it that way, this is my third marriage that I’m on so, no, my husband has nothing to do with my professional life,” Simmons told the publication. At the climax of Leissner’s involvement with 1MDB, The Wall Street Journal reported he earned more than $10 million a year, according to people familiar with the matter.
Bond Offering Mindfulness
Goldman denies any wrongdoing, though investigators claim the bank made around $600 million in fees for its work with 1MDB. Some of the items in question are three bond offerings between 2012 and 2013 that Goldman Sachs was the the underwriter on which raised $6.5 billion. Both Leissner and Ng made huge bank in the form of bonuses directly correlated to the revenue the bonds generated.
There are six countries investigating the 1MDB scandal. The Wall street titan stated in a securities filing last week the bank may also face penalties from dealings with 1MDB and is cooperating with various government probes. Leissner is scheduled to be sentenced in January, Ng was arrested in Malaysia last week, and Low is currently on the run.
