US charges ex-Goldman Sachs bankers in 1MDB graft scandal

US officials have unveiled criminal charges against two former Goldman Sachs bankers over the scandal-plagued Malaysian sovereign wealth fund 1MDB, raising fresh questions about corporate culture at the prestigious investment bank. The Justice Department arrested former Goldman Sachs banker Ng Chong Hwa in Malaysia on Thursday, and unsealed charges against Tim Leissner, another ex-Goldman banker, who has already pleaded guilty and agreed to pay $43.7 million in restitution of ill-gotten gains.

Both men were charged with conspiracy to commit bribery and conspiracy to commit money laundering. The Justice Department also announced criminal charges against Low Taek Jho, an alleged mastermind and an intermediary to the Malaysian fund. US officials say he remains at large.

These are the first US criminal charges in the case which spawned investigations around the world. The 1MDB scandal has had a major impact in Malaysia, with allegations of involvement of top officials contributing to the downfall of the long-ruling coalition at elections in May. Former prime minister Najib Razak has since been arrested and charged over the scandal.