Goldman Sachs has urged a Brooklyn federal judge to impose a severe penalty on their former partner, who previously faced a hefty fine linked to a foreign bribery scandal involving the investment bank.
In court on Thursday, the bank’s leading attorney targeted U.S. District Judge Margo Brody, criticizing Timothy Reissner, a 53-year-old banker originally from Germany, for “lying extensively and deceiving numerous people.”
Reissner, who once led Goldman’s Southeast Asian operations, is scheduled for sentencing next week after admitting to defrauding Malaysia’s Sovereign Wealth Fund, known as 1MDB, in 2018, with losses approaching $3 billion.
He could face up to 25 years in prison. However, prosecutors from the Justice Department are requesting a more lenient sentence from Judge Brody on May 29.
“Mr. Reissner misled his colleagues for several years, culminating in the only criminal case ever filed against Goldman Sachs in its lengthy history,” Kathryn H. Mumler, Goldman’s legal representative, stated in her letter to the judge.
“It’s clear he acknowledges the significant damage he caused to Goldman Sachs and the trust invested in him by his colleagues.”
Goldman’s attorney remarked that the bank would “accept” Reissner’s explanations, although it seems he attempted to justify his actions by suggesting that Goldman pressured him into creating business ventures.
Ruemmler noted that Reissner resisted efforts by Goldman Sachs to limit the fees associated with a 1MDB bond transaction.
In October 2023, a Manhattan federal judge ordered Reissner to pay $20 million in reparations, yet indicated that Goldman Sachs never received any restitution.
Ruemmler’s correspondence was a response to a memorandum wherein a DOJ prosecutor sought leniency, highlighting Reissner’s significant cooperation with the investigation.
The DOJ mentioned that Reissner’s assistance contributed to the conviction of his former colleague, Roger N.G., which subsequently led Goldman Sachs to incur a record penalty of $2.9 billion.
“Reissner only testified in one jury trial, but the information he provided implicated high-profile individuals, including the former Malaysian prime minister,” they added. This situation could increase the severity of punishment from the court, they indicated, suggesting that for Reissner, simply serving time might not suffice.
Reissner was involved in managing three bond transactions worth $6.5 billion between 2012 and 2013 at 1MDB.
Rather than funding development projects, over $2.7 billion went toward a lavish lifestyle that included luxury properties, art acquisitions, and even financing films like “The Wolf of Wall Street.”
Reissner has acknowledged taking between $50 million and $60 million in kickbacks. He also admitted to forging documents and creating a fake email account to mislead his colleagues and his then-wife, Kimora Lee Simmons, about his marital status.
The Department of Justice lawyer is currently awaiting a response from Reissner’s attorney.
“Goldman Sachs’ letter to the court is astonishing,” noted lawyer Henry Mazrek, speaking to Bloomberg News on Thursday.
“Reissner has spent recent years collaborating with the DOJ to unveil the corporate culture and institutional greed that contributed to the downfall of the 1MDB project,” stated Mazrek.
Goldman Sachs has opted not to comment further.
