1MDB: Goldman Sachs-backed Malaysian fund

The story of 1 Malaysia Development Berhad (1MDB) just got crazier.

17 current and former Goldman Sachs execs are now facing criminal charges in Malaysia because of their alleged involvement in the 1MDB scandal. Michael Evans, who is president and international face of Alibaba, the China e-commerce giant, is one of those 17 former Goldman directors.

The 1MDB scandal is one of the biggest financial scandals of all time, bringing down Malaysia’s prime minister. The prime suspect is still on the run, and now Goldman Sachs is in the firing line.

The 1Malaysia Development Bhd started by buying privately owned power plants and planning a financial district in Malaysia’s capital Kuala Lumpur.

However the fund was rather good at collecting debt, amassing $12 billion, instead of foreign investment. The issue being most of the money raised was allegedly embezzled or laundered. The US Justice Department said that more than $4.5 billion went through fraudulent shell companies to corrupt officials, according to the Washington Post.

Jho Low, the lead businessman in the scandal, has been on the run for months. He’s accused of diverting money from 1MDB into personal accounts disguised to look like legitimate business. The money allegedly went straight to the wallets of corrupt officials.

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