The husband of Kimora Lee Simmons is at the center of a massive multi-million dollar scandal that could result in a lot of trouble for the couple.
According to International Business Times, the FBI is reportedly investigating Goldman Sachs regional chairman Tim Leissner‘s connections to Malaysian Prime Minister Najib Razak, who is allegedly involved in the scandal
Leissner, the Singapore-based chairman of Goldman’s Southeast Asia operations, currently lives in California with Simmons, who was married to hip-hop mogul Russell Simmons. Media sources report that Simmons has connections to Razak’s wife. With Leissner in the US, it is believed that he is taking time off from his role at Goldman Sachs as pressure for Razak increased.
The Malaysian government is investigating the high priced 1Malaysia Development Bhd scandal as they search for answers pertaining to why $681 million (£470m) was transferred into Razak’s bank account by Saudi Arabia. In addition to the Malaysian government, authorities in France and the United Kingdom are looking into the situation as they examine 1Malaysia Development Bhd for financial irregularities.
Although the fund was created in 2009 to bolster Malaysia’s coffers and turn the capital, Kuala Lumpur, into an economic hub, IBTimes takes note of critics who state the fund lacks transparency and took on too much debt. In early 2015, the fund missed $11 billion (£7.5bn) of payments it owed to banks and bondholders.
When the Wall Street Journal disclosed that $618 million (£426m) was transferred from the fund into Najib’s personal bank account a scandal erupted, forcing the prime minister to claim that the money had been a donation from the Saudis, which was confirmed after an investigation by Malaysia’s anti-corruption commission.
News of the FBI’s investigation surfaced in the New York Post, which claimed that the law agency was reportedly probing into all the fund’s transactions with wider probes of money-laundering allegations spanning five countries.
With the investigation things could lead to Goldman facing a congressional inquiry.
Broken down, Goldman Sachs collected fees, commissions and expenses of almost $593 million (£586m). The amount represents the sum of three bond sales for 1MDB in 2012. In all, it totals 9.1% of the money raised. This is a big difference from the typical cut for an investment bank, which usually adds up to about 5%.
“If it exceeds the limit Malaysia sets for investment managers of a fund, then Goldman will have to deal with some negative kickback from Malaysia,” Dick Bove, a bank industry analyst at Rafferty Capital Markets, told the Post.
(Photo Source: Kimora Lee Simmons Instagram)