Philip Marcello
NEW YORK (AP) — The former Goldman Sachs banker was sentenced to two years in federal prison on Thursday for his role in a $4.5 billion scheme to loot Malaysia’s national investment fund.
Tim Reissner apologized to Malaysians in a ruling in Brooklyn federal court, calling him the “real victim” of the plan.
“Funds raised over a decade ago could have had the potential to bring great benefits to the country and its citizens,” he read in court and said in a statement provided by his lawyer. “Instead, they were misused because of my greed and the desires of those involved with me.”
Prosecutors said Raissner and other Goldman Sachs bankers helped Raisser and other Goldman Sachs bankers raise $6.5 billion through bond sales, the Malaysian Investment Fund, known as 1MBD, or the 1 Malaysian Development Barhad Fund.
However, they say that over $4.5 billion in funds were stolen and washed through bribery and kickbacks.
The booty supported luxury purchases, from wild parties to gems, art, superyachts and luxury spending on luxury real estate, prosecutors said. They also helped raise funds for the 2013 Martin Scorsese film “The Wolf on Wall Street,” starring Leonardo DiCaprio.
The scandal led to the collapse of Malaysian Prime Minister Najib Razak’s government in 2018. Najib was convicted by Malaysian Court of Abusing Power and other crimes courts related to the scandal and sentenced to 12 years in prison.
“What we did was clearly wrong and I am fully responsible for my role,” Reissner said Thursday. “I deeply regret my actions. If I could turn back the time, I would have reverted it without hesitation.”
Raisner pleaded guilty to bribe government officials in Malaysia and Abu Dhabi in 2018.
He served as a key government witness at the trial of Roger NG, a former Goldman Sachs Banker, who was sentenced to 10 years in federal prison in 2023.
While NG’s lawyers described 1MDB’s looting as “probably the only biggest robbery in world history,” prosecutors claimed he made him a scapego-go with a crime committed by others, including the higher ranked Raissner.
Prosecutors declined to comment on Thursday’s sentence. They did not seek a specific sentence prior to the sentence, but Reisner’s lawyers had already sought sentences for the time they were served.
Raissner is scheduled to report to prison on September 15th, and his lawyers have requested that he be sent to federal prison in Otisville, New York, according to prosecutors.
Henry Mazrek, Reissner’s lawyer, said his client was ready to serve his sentence. This includes two years of supervised release after prison and already forfeiture of $43.7 million, which has already been paid.
“Mr. Raisner not only did he gain generosity in the verdict, but also showed his true regret for his actions and helped him to tell the full story of 1MDB and Goldman Sachs,” Mazrek said in an email. “He does that and continues to talk to everyone who hears about Goldman’s toxic culture that influenced the 1MDB scheme.”
Original issue: May 29, 2025, 6:17pm EDT
