US IP hacking allegations reach new depths in whimsical thinking

https://youtu.be/hASoHG1gDcs
https://youtu.be/bbtVTlZW_g0 https://youtu.be/PCpch4DOIdE https://youtu.be/mSuuYbO3C-U
https://youtu.be/cwQZPK41j8k

US Justice Department officials issued indictments on two Chinese nationals who allegedly stole, "in association with" the Chinese Ministry of State Security (MSS), vast amounts of confidential data from at least 45 US tech companies and government agencies over the past ten years.

Zhu Hua and Zhang Shilong were charged with three counts each of computer hacking, conspiracy to commit wire fraud, and aggravated identity theft. According to the indictment, the two men targeted and "stole hundreds of gigabytes of sensitive data" in aviation, space and satellite technology, manufacturing, pharmaceutical, and oil and gas exploration, as well as from communications and computer processing firms and maritime technology companies. The indictment also said the hackers stole personal information on more than 100,000 US Navy personnel.

The indictment claimed the two men were part of the hacking unit, and worked for a company called Huaying Haitai, in association with the Chinese MSS.

This most recent charge is part of the unprecedented prosecutorial efforts aimed at so-called "Chinese government-backed hacking," and serves as an accurate reflection of the escalated attacks against China that have been carried out by the US through legal mechanisms. The indictment refers to specific individuals, which is actually misleading as it suggests the US has evidence worthy of an indictment against China. But the logical fallacies tucked inside the allegations will not prevent outsiders from thinking that the move was nothing more than a carefully constructed effort motivated by political purposes.

It is unknown if the two Chinese nationals in question, and the company they worked for, have hacked anything at all, let alone US corporations and institutions. However, it is an over-exaggeration to say the alleged hackers are so "omnipotent" that they can pilfer anything they desire from key American sectors. Are they capable of doing so in the real world?

Supposing, as the US DoJ indictment states, that hackers could get whatever they wanted through internet channels, where one or two individuals could steal technology developed by thousands of researchers, then the world's most profitable sector would be the hacking industry. Computer hackers would have the ability to take down pirates and drug-trafficking enterprises, as well as the top companies in innovation. They would be immune to any kind of legislation. If this really were the case, the best hackers would undoubtedly come from the US and other Western countries as they are most developed in the world.

The US government initially claimed that China's hacking efforts have so far cost the US hundreds of billions of dollars annually, a preposterous claim from any vantage point. To begin with, and assuming China is so powerful that it has stolen technological information for over a decade that is supposedly worth over a trillion in intellectual property, as the US has indicated, then how is it that China still lags behind the US in so many fields, from chips to electric vehicles, and even aviation engines?

Since the US has been combating hackers for such an extended period, then how is it that some are able to do whatever they want? If American institutions had such fragile cyber systems, then nothing would be worth stealing.

The bias here is rooted in such strong cultural arrogance that some American elites are now convinced that China's rapid growth could not have happened without first stealing US technology. After failing to find such Chinese cyberspies, US officials amplified concerns by publicly claiming that Chinese scholars and college students in the US were indeed engaged in some level of espionage. Now, these same people whimsically believe that Chinese hackers have an important role on the internet when it comes to US intellectual property theft.

Nobody knows how many hackers are in China, but there isn't one Chinese citizen who believes that a few online game masters, who could also be cyber thieves, are the true pioneers behind China's technology modernization. After all, officials from China's security sector are not that stupid or naïve.

It would be farcical in nature to pair cybersecurity authorities with gaming experts, especially when taking into account the Chinese system. Security officials do not blithely categorize gaming experts, while disregarding Sino-US relations, accusing them of stealing critical foreign technology from a variety of industries, the way a burglar would break into a department store.

Those security officials simply do not exist, who are technology experts that can create a complex system serving the needs of companies in all industries while effectively manipulating would-be hackers with ease. There is not an entity on the planet that would take such a risk when network security is one of the most sensitive issues between China and the US.

The US allegations against China are practically hysterical all by themselves. This latest round shows the US attack on China has become more comprehensive, which could see more of China's government agencies getting involved. Actually, it is inevitable. Therefore, instead of adhering to a low profile strategy, China must face these provocations from the US and do more to safeguard national interests.

In recent months, the US has taken provocative action, like sanctioning senior-ranking PLA generals, ordering their allies to arrest Huawei executives, to prosecuting and extraditing so-called "Chinese spies," and signing Tibet-related bills.

China needs to reflect upon the previous passivity that it has shown and respond proactively. China is a country that loves peace and always pursues gentle action. However, now is the time for China to consider new countermeasures against nations who have done nothing but pour dirty water on the country's basins. - Global Times.

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https://youtu.be/7_rD45EpUAE

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US IP hacking allegations reach new depths in whimsical thinking

https://youtu.be/hASoHG1gDcs
https://youtu.be/bbtVTlZW_g0 https://youtu.be/PCpch4DOIdE https://youtu.be/mSuuYbO3C-U
https://youtu.be/cwQZPK41j8k

US Justice Department officials issued indictments on two Chinese nationals who allegedly stole, "in association with" the Chinese Ministry of State Security (MSS), vast amounts of confidential data from at least 45 US tech companies and government agencies over the past ten years.

Zhu Hua and Zhang Shilong were charged with three counts each of computer hacking, conspiracy to commit wire fraud, and aggravated identity theft. According to the indictment, the two men targeted and "stole hundreds of gigabytes of sensitive data" in aviation, space and satellite technology, manufacturing, pharmaceutical, and oil and gas exploration, as well as from communications and computer processing firms and maritime technology companies. The indictment also said the hackers stole personal information on more than 100,000 US Navy personnel.

The indictment claimed the two men were part of the hacking unit, and worked for a company called Huaying Haitai, in association with the Chinese MSS.

This most recent charge is part of the unprecedented prosecutorial efforts aimed at so-called "Chinese government-backed hacking," and serves as an accurate reflection of the escalated attacks against China that have been carried out by the US through legal mechanisms. The indictment refers to specific individuals, which is actually misleading as it suggests the US has evidence worthy of an indictment against China. But the logical fallacies tucked inside the allegations will not prevent outsiders from thinking that the move was nothing more than a carefully constructed effort motivated by political purposes.

It is unknown if the two Chinese nationals in question, and the company they worked for, have hacked anything at all, let alone US corporations and institutions. However, it is an over-exaggeration to say the alleged hackers are so "omnipotent" that they can pilfer anything they desire from key American sectors. Are they capable of doing so in the real world?

Supposing, as the US DoJ indictment states, that hackers could get whatever they wanted through internet channels, where one or two individuals could steal technology developed by thousands of researchers, then the world's most profitable sector would be the hacking industry. Computer hackers would have the ability to take down pirates and drug-trafficking enterprises, as well as the top companies in innovation. They would be immune to any kind of legislation. If this really were the case, the best hackers would undoubtedly come from the US and other Western countries as they are most developed in the world.

The US government initially claimed that China's hacking efforts have so far cost the US hundreds of billions of dollars annually, a preposterous claim from any vantage point. To begin with, and assuming China is so powerful that it has stolen technological information for over a decade that is supposedly worth over a trillion in intellectual property, as the US has indicated, then how is it that China still lags behind the US in so many fields, from chips to electric vehicles, and even aviation engines?

Since the US has been combating hackers for such an extended period, then how is it that some are able to do whatever they want? If American institutions had such fragile cyber systems, then nothing would be worth stealing.

The bias here is rooted in such strong cultural arrogance that some American elites are now convinced that China's rapid growth could not have happened without first stealing US technology. After failing to find such Chinese cyberspies, US officials amplified concerns by publicly claiming that Chinese scholars and college students in the US were indeed engaged in some level of espionage. Now, these same people whimsically believe that Chinese hackers have an important role on the internet when it comes to US intellectual property theft.

Nobody knows how many hackers are in China, but there isn't one Chinese citizen who believes that a few online game masters, who could also be cyber thieves, are the true pioneers behind China's technology modernization. After all, officials from China's security sector are not that stupid or naïve.

It would be farcical in nature to pair cybersecurity authorities with gaming experts, especially when taking into account the Chinese system. Security officials do not blithely categorize gaming experts, while disregarding Sino-US relations, accusing them of stealing critical foreign technology from a variety of industries, the way a burglar would break into a department store.

Those security officials simply do not exist, who are technology experts that can create a complex system serving the needs of companies in all industries while effectively manipulating would-be hackers with ease. There is not an entity on the planet that would take such a risk when network security is one of the most sensitive issues between China and the US.

The US allegations against China are practically hysterical all by themselves. This latest round shows the US attack on China has become more comprehensive, which could see more of China's government agencies getting involved. Actually, it is inevitable. Therefore, instead of adhering to a low profile strategy, China must face these provocations from the US and do more to safeguard national interests.

In recent months, the US has taken provocative action, like sanctioning senior-ranking PLA generals, ordering their allies to arrest Huawei executives, to prosecuting and extraditing so-called "Chinese spies," and signing Tibet-related bills.

China needs to reflect upon the previous passivity that it has shown and respond proactively. China is a country that loves peace and always pursues gentle action. However, now is the time for China to consider new countermeasures against nations who have done nothing but pour dirty water on the country's basins. - Global Times.

Related:

https://youtu.be/7_rD45EpUAE

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Photo: VCG China’s business people, researchers, scholars say they ‘feel the chill’ in US Growing China-US tensions have affected te...

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https://youtu.be/pSHOSumep9E https://youtu.be/4fJKlEyEOEg https://youtu.be/N5Ta_RhsXYY American economist Jeffrey D. Sachs says 

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China marks 40th anniversary of reform and opening-up with greater resolve to cope with ‘unimaginable’ perils

Chinese President Xi Jinping ahead of his speech at the Great Hall of the People in Beijing to mark the 40th anniversary of China's reform and opening up. Photo: Reuters

https://youtu.be/MILBtNHX4rQ

• Chinese president avoids specifics for the road ahead 

• Audiences at home and abroad need convincing that reforms started 40 years ago will continue 

China faces “unimaginable” perils and dangers ahead and must rely on Communist Party rule and economic reform to sail through them, Chinese President Xi Jinping said in one of the most watched speeches of his leadership in Beijing on Tuesday.

Speaking at the Great Hall of the People to mark the 40th anniversary of the country’s reform and opening up, Xi did not directly address the specific challenges facing the world’s second biggest economy or touch on sensitive issues such as the ongoing trade war with the US.

Instead, Xi spent much of the hour-and-a-half speech drawing general conclusions about China’s economic and social development in the past four decades since Deng Xiaoping, China’s former paramount leader, started to embrace market-oriented changes in China.

The No 1 lesson China can draw from the 40 years of success is that the country must stick to the leadership of the Communist Party, Xi said.

China tightens control of local economic data ahead of expected weak growth next year

.

“The practices of reform and opening up in the past 40 years have shown us that the Chinese Communist Party leadership is the fundamental character of socialism with Chinese characteristics … east, west, south, north, and the middle, the party leads everything,” he said.

“Every step in reform and opening up will not be easy, and we will face all kinds of risks and challenges in the future and we may even encounter unimaginable terrifying tidal waves and horrifying storms,” Xi said.

“Only by improving the party's leadership and governance … can we ensure the ship of reform and opening up will sail forward.”

Xi’s speech was delivered as prospects for China’s growth are clouded abroad, by rising rivalries between China and the US, and by a deepening economic slowdown at home.

Xi, who is now legally entitled to retain his presidency beyond 2023 after a constitutional amendment in March this year, needs to convince domestic and foreign audiences that Beijing remains committed to the economic liberalisation process that was started by Deng 40 years ago.

The stock indexes of Shanghai and Shenzhen, which had both risen in early trading in anticipation of possible policy announcements, retraced their declines soon after proceedings began.

Shanghai’s composite index fell as much as 1.2 per cent, while Shenzhen’s index fell as much as 1.5 per cent to an eight-week low.

On the Hong Kong exchange, the Hang Seng Index fell 0.9 per cent while the H-share index declined 1.3 per cent.

Stocks slide as Xi refrains from kick-starting China’s sagging growth

Xi stressed that China would stick to its own chosen path, namely socialism with Chinese characteristics.

“To push forward reform and opening up in a country with 5,000 years of civilisation and a population of 1.3 billion, there are no textbooks containing golden rules or teachers who can be arrogant to the Chinese people,” he said.

Xi quoted the renowned Chinese author Lu Xun, who asked, “what's a road? A trodden path in a place where there was previously no road, and a passage opened from a place where there were only thorns.”

How a generation climbed China’s social ladder through 40 years of luck, talent and economic growth

Xi opened his speech by saying the Cultural Revolution, from 1966 to 1976, had brought China's economy to the brink of collapse and went on to quote Deng, saying “China's modernisation and socialism will be buried if we do not embrace reform and opening up now.”

The audience at the Great Hall of the People listen to Chinese President Xi Jinping’s speech commemorating 40 years of opening up and reform. Photo: Xinhua

He made it clear that Beijing would not abandon its road as China's developmental achievements in the past four decades had proven the “vivid vitality” of China's “scientific socialism”.

“For those that ought to be changed or can be changed, we will change; but for those that shouldn't be changed or cannot be changed, we will firmly not change,” Xi said.

In international relations, Xi reiterated Beijing’s existing line that China would not seek hegemony, but he did not mention the US specifically.

Xi said China was walking closer to the world’s centre stage and was now “an internationally recognised” builder of world peace, a contributor to global development, and a keeper of international order.

China, he said, had contributed “China wisdom, China solutions and China power” to world peace and development.

The Chinese president said China would play its role as “a big responsible country” to support developing countries and to take part in global governance.

“China will never grow at the cost of other countries' interests but will never give up its legitimate rights and interests … China's development does not pose a threat to any other country. No matter how far China develops, it will never seek hegemony,” Xi said.

How China’s ‘reform and opening up’ transformed poor families into middle-class shoppers

In a long list of China's economic and social achievements of the past four decades, Xi said China had achieved an annual average growth in GDP of 9.5 per cent since 1978, and contributed more than 30 per cent towards total global economic growth for many years.

China, he said, was now the world's second largest economy, the world's biggest manufacturing country and the world's No 1 commodity trading country.

From left: Chinese President Xi Jinping and Premier Li Keqiang at the 40th anniversary commemorations of reform on Thursday. Photo: AP

Bureaucracy still hampers academic research in China 40 years after opening up

In terms of ideology, Xi said China would stick to its official ideology, namely Marxism, Leninism, Mao Thought, Deng Xiaoping Theory, Three Represents theory, scientific development concept and his own “Theory of Socialism with Chinese Characteristics in the New Era”.

In terms of economic policies, Xi reiterated the policy that China would support public ownership while offering “unswerving” support to non-state sectors.

By  Zhou Xin  Nectar Gan Catherine Wong,  South China Morning Post

China marks 40th anniversary of reform and opening-up with greater resolve to cope with ‘unimaginable’ perils

Chinese President Xi Jinping ahead of his speech at the Great Hall of the People in Beijing to mark the 40th anniversary of China's reform and opening up. Photo: Reuters

https://youtu.be/Zj-7Qx5Cges

https://youtu.be/MILBtNHX4rQ

• Chinese president avoids specifics for the road ahead 

• Audiences at home and abroad need convincing that reforms started 40 years ago will continue 

China faces “unimaginable” perils and dangers ahead and must rely on Communist Party rule and economic reform to sail through them, Chinese President Xi Jinping said in one of the most watched speeches of his leadership in Beijing on Tuesday.

Speaking at the Great Hall of the People to mark the 40th anniversary of the country’s reform and opening up, Xi did not directly address the specific challenges facing the world’s second biggest economy or touch on sensitive issues such as the ongoing trade war with the US.

Instead, Xi spent much of the hour-and-a-half speech drawing general conclusions about China’s economic and social development in the past four decades since Deng Xiaoping, China’s former paramount leader, started to embrace market-oriented changes in China.

The No 1 lesson China can draw from the 40 years of success is that the country must stick to the leadership of the Communist Party, Xi said.

China tightens control of local economic data ahead of expected weak growth next year

.

“The practices of reform and opening up in the past 40 years have shown us that the Chinese Communist Party leadership is the fundamental character of socialism with Chinese characteristics … east, west, south, north, and the middle, the party leads everything,” he said.

“Every step in reform and opening up will not be easy, and we will face all kinds of risks and challenges in the future and we may even encounter unimaginable terrifying tidal waves and horrifying storms,” Xi said.

“Only by improving the party's leadership and governance … can we ensure the ship of reform and opening up will sail forward.”

Xi’s speech was delivered as prospects for China’s growth are clouded abroad, by rising rivalries between China and the US, and by a deepening economic slowdown at home.

Xi, who is now legally entitled to retain his presidency beyond 2023 after a constitutional amendment in March this year, needs to convince domestic and foreign audiences that Beijing remains committed to the economic liberalisation process that was started by Deng 40 years ago.

The stock indexes of Shanghai and Shenzhen, which had both risen in early trading in anticipation of possible policy announcements, retraced their declines soon after proceedings began.

Shanghai’s composite index fell as much as 1.2 per cent, while Shenzhen’s index fell as much as 1.5 per cent to an eight-week low.

On the Hong Kong exchange, the Hang Seng Index fell 0.9 per cent while the H-share index declined 1.3 per cent.

Stocks slide as Xi refrains from kick-starting China’s sagging growth

Xi stressed that China would stick to its own chosen path, namely socialism with Chinese characteristics.

“To push forward reform and opening up in a country with 5,000 years of civilisation and a population of 1.3 billion, there are no textbooks containing golden rules or teachers who can be arrogant to the Chinese people,” he said.

Xi quoted the renowned Chinese author Lu Xun, who asked, “what's a road? A trodden path in a place where there was previously no road, and a passage opened from a place where there were only thorns.”

How a generation climbed China’s social ladder through 40 years of luck, talent and economic growth

Xi opened his speech by saying the Cultural Revolution, from 1966 to 1976, had brought China's economy to the brink of collapse and went on to quote Deng, saying “China's modernisation and socialism will be buried if we do not embrace reform and opening up now.”

The audience at the Great Hall of the People listen to Chinese President Xi Jinping’s speech commemorating 40 years of opening up and reform. Photo: Xinhua

He made it clear that Beijing would not abandon its road as China's developmental achievements in the past four decades had proven the “vivid vitality” of China's “scientific socialism”.

“For those that ought to be changed or can be changed, we will change; but for those that shouldn't be changed or cannot be changed, we will firmly not change,” Xi said.

In international relations, Xi reiterated Beijing’s existing line that China would not seek hegemony, but he did not mention the US specifically.

Xi said China was walking closer to the world’s centre stage and was now “an internationally recognised” builder of world peace, a contributor to global development, and a keeper of international order.

China, he said, had contributed “China wisdom, China solutions and China power” to world peace and development.

The Chinese president said China would play its role as “a big responsible country” to support developing countries and to take part in global governance.

“China will never grow at the cost of other countries' interests but will never give up its legitimate rights and interests … China's development does not pose a threat to any other country. No matter how far China develops, it will never seek hegemony,” Xi said.

How China’s ‘reform and opening up’ transformed poor families into middle-class shoppers

In a long list of China's economic and social achievements of the past four decades, Xi said China had achieved an annual average growth in GDP of 9.5 per cent since 1978, and contributed more than 30 per cent towards total global economic growth for many years.

China, he said, was now the world's second largest economy, the world's biggest manufacturing country and the world's No 1 commodity trading country.

From left: Chinese President Xi Jinping and Premier Li Keqiang at the 40th anniversary commemorations of reform on Thursday. Photo: AP

Bureaucracy still hampers academic research in China 40 years after opening up

In terms of ideology, Xi said China would stick to its official ideology, namely Marxism, Leninism, Mao Thought, Deng Xiaoping Theory, Three Represents theory, scientific development concept and his own “Theory of Socialism with Chinese Characteristics in the New Era”.

In terms of economic policies, Xi reiterated the policy that China would support public ownership while offering “unswerving” support to non-state sectors.

By  Zhou Xin  Nectar Gan Catherine Wong,  South China Morning Post

Malaysia files criminal charges against Goldman Sachs, ex-bankers in 1MDB probe

https://youtu.be/jNJU98b4lzI

Malaysia takes Goldman Sachs to court with AG Tommy Thomas saying that the bank’s dealings with 1MDB broke laws at the heart of the capital markets; MRT Corp will be looking for a new CEO; and Unisem’s offer is “not fair or reasonable”.

This is the first time Malaysian prosecutors have directly targeted Goldman Sachs for its alleged role in the 1MDB scandal © AP

PETALING JAYA: The Attorney-General Chambers has filed criminal charges against subsidiaries of investment bank Goldman Sachs and its key employees over the handling of bonds issued by 1Malaysia Development Bhd (1MDB) totalling USD6.5bil (RM27.2bil).

Attorney general Tommy Thomas said that charges were filed against Goldman Sachs' former Southeast Asia chairman Tim Leissner and former 1MDB employees Jasmine Loo Ai Swan and fugitive businessman Low Taek Jho, also known as Jho Low.

He added that banker Roger Ng Chong Hwa would be charged shortly.

Thomas said Leissner and Ng had conspired with Low, Loo and others to bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in three Bond issuances.

He also said that the Goldman employees had not only received part of the misappropriated bond proceeds, but also received large bonuses and enhanced career prospects at the bank and in the overall investment banking industry.

"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate USD2.7bil (RM11.3bil) from the proceeds of three bonds issued by subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," he said in a statement on Monday (Dec 17).

Thomas said the three bonds were the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy Limited, the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy (Langat) Limited and the 10-year USD3bil (RM12.6bil) issued by 1MDB Global Investments Limited.

Thomas added that the investment bank had benefited by receiving underwriting and arranging fees of approximately USD600mil (RM2.5bil), which was higher than market rates and industry norms.

Thomas also said the Offering Circulars and Private Placement Memorandum for the Bonds filed with the Labuan Financial Services Authority had also contained statements which were false, misleading, coupled with omissions of material.

"Offering Circulars and Private Placement Memorandum are serious documents, intended to be relied on, and, in fact, were relied on, by purchasers of the bonds.

"The scheme designed and crafted by the accused to fraudulently structure the bonds for ostensibly legitimate purposes when they knew that the proceeds thereof would be misappropriated and fraudulently diverted by the accused themselves was planned and executed in order to defraud the Government of Malaysia and the purchasers of the bonds," he said.

Thomas said their scheme had contravened Malaysia’s securities laws, particularly, Section 179 of the Capital Markets and Services Act, 2007 (Act 671).

"Malaysia considers the allegations in the charges against all the accused to be grave violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the USD2.7bil (RM11.3bil) misappropriated from the Bonds proceeds and USD600mil (RM2.5bil) in fees received by Goldman Sachs, and custodial sentences against each of the individual accused: the maximum term of imprisonment being 10 years," he said.

He said that if no criminal proceedings are instituted against the accused, their undermining of the financial system and market integrity will go unpunished.

“Having held themselves out as the pre-eminent global adviser / arranger for bonds, the highest standards are expected of Goldman Sachs. They have fallen far short of any standard. In consequence, they have to be held accountable,” he said. - The Star.

Related:

 

RM47bil lost to corruption, problem can't be solved 'overnight' says ...

Goldman Sachs fires back after Malaysia charges bank in 1MDB probe - Business News

Malaysia files criminal charges against Goldman, ex-bankers in 1MDB probe - Business News

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Malaysia files criminal charges against Goldman Sachs, ex-bankers in 1MDB probe

https://youtu.be/jNJU98b4lzI
https://youtu.be/Jwer8mGvM-Q
https://youtu.be/dFnu-SP9mLU

Malaysia takes Goldman Sachs to court with AG Tommy Thomas saying that the bank’s dealings with 1MDB broke laws at the heart of the capital markets; MRT Corp will be looking for a new CEO; and Unisem’s offer is “not fair or reasonable”.

This is the first time Malaysian prosecutors have directly targeted Goldman Sachs for its alleged role in the 1MDB scandal © AP

PETALING JAYA: The Attorney-General Chambers has filed criminal charges against subsidiaries of investment bank Goldman Sachs and its key employees over the handling of bonds issued by 1Malaysia Development Bhd (1MDB) totalling USD6.5bil (RM27.2bil).

Attorney general Tommy Thomas said that charges were filed against Goldman Sachs' former Southeast Asia chairman Tim Leissner and former 1MDB employees Jasmine Loo Ai Swan and fugitive businessman Low Taek Jho, also known as Jho Low.

He added that banker Roger Ng Chong Hwa would be charged shortly.

Thomas said Leissner and Ng had conspired with Low, Loo and others to bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in three Bond issuances.

He also said that the Goldman employees had not only received part of the misappropriated bond proceeds, but also received large bonuses and enhanced career prospects at the bank and in the overall investment banking industry.

"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate USD2.7bil (RM11.3bil) from the proceeds of three bonds issued by subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," he said in a statement on Monday (Dec 17).

Thomas said the three bonds were the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy Limited, the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy (Langat) Limited and the 10-year USD3bil (RM12.6bil) issued by 1MDB Global Investments Limited.

Thomas added that the investment bank had benefited by receiving underwriting and arranging fees of approximately USD600mil (RM2.5bil), which was higher than market rates and industry norms.

Thomas also said the Offering Circulars and Private Placement Memorandum for the Bonds filed with the Labuan Financial Services Authority had also contained statements which were false, misleading, coupled with omissions of material.

"Offering Circulars and Private Placement Memorandum are serious documents, intended to be relied on, and, in fact, were relied on, by purchasers of the bonds.

"The scheme designed and crafted by the accused to fraudulently structure the bonds for ostensibly legitimate purposes when they knew that the proceeds thereof would be misappropriated and fraudulently diverted by the accused themselves was planned and executed in order to defraud the Government of Malaysia and the purchasers of the bonds," he said.

Thomas said their scheme had contravened Malaysia’s securities laws, particularly, Section 179 of the Capital Markets and Services Act, 2007 (Act 671).

"Malaysia considers the allegations in the charges against all the accused to be grave violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the USD2.7bil (RM11.3bil) misappropriated from the Bonds proceeds and USD600mil (RM2.5bil) in fees received by Goldman Sachs, and custodial sentences against each of the individual accused: the maximum term of imprisonment being 10 years," he said.

He said that if no criminal proceedings are instituted against the accused, their undermining of the financial system and market integrity will go unpunished.

“Having held themselves out as the pre-eminent global adviser / arranger for bonds, the highest standards are expected of Goldman Sachs. They have fallen far short of any standard. In consequence, they have to be held accountable,” he said. - The Star.

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