Ex-Goldman Sachs Banker Tim Leissner Begins Two-Year Prison Term Over 1MDB

Tim Leissner, the former Goldman Sachs managing director who ran the bank’s Southeast Asia franchise, has begun serving a two-year federal prison term for his role in the 1MDB scandal that siphoned roughly US$4.5 billion from Malaysia’s sovereign wealth fund. Leissner surrendered to a federal correctional facility in Allenwood, Pennsylvania, in early February to begin the sentence that was imposed following his prosecution.

Leissner pleaded guilty in connection with the 1MDB scheme and later cooperated extensively with U.S. authorities. He admitted personally receiving more than US$150 million and testified that roughly US$2 billion flowed to bribes for foreign officials and about US$1 billion to kickbacks for participants. The scheme, described by prosecutors as one of the largest financial frauds in history, prompted corporate and criminal fallout across jurisdictions.

The two-year term was handed down on May 29, 2025, by Chief District Judge Margo Brodie in the U.S. District Court for the Eastern District of New York, and Leissner began serving that sentence upon surrender. Reports note that he had sought multiple delays to his reporting date but a federal judge rejected his latest request. Leissner’s lawyer Henry Mazurek said Leissner surrendered at Allenwood, Pennsylvania, and has argued that clemency would be appropriate. Mazurek said that "a pardon was appropriate given his client’s role in uncovering violations by Goldman and others."

Leissner’s cooperation made him a key witness in the 2022 U.S. trial of his former colleague Roger Ng. Leissner testified at that trial, which resulted in Ng’s conviction and a 10-year sentence. Ng was later transferred to Malaysia shortly before he was due to begin serving his U.S. sentence to face charges there. The Malaysian government has announced it is seeking Leissner’s extradition, and a notice on the U.S. Department of Justice website shows Leissner filed a presidential pardon application last year.

For Goldman Sachs employees and those in banking, the case is a blunt illustration of the stakes of compliance failures. Goldman has paid more than US$5 billion to settle misconduct claims tied to 1MDB, and the scandal has required prolonged legal, regulatory, and reputational remediation. Front-office bankers, compliance officers, legal teams, and senior management all face heightened scrutiny after episodes that lead to multimillion and multibillion-dollar settlements and criminal probes.

Leissner’s personal legal history includes an arrest in June 2018, a forced payment of US$43 million, and high bail in later years. The 1MDB matter continues to have operational consequences for banks and their employees: compliance programs, due diligence on sovereign and sovereign-related clients, escalation paths for suspicious activity, and incentive structures are under renewed review. With extradition requests and a pending pardon application still unresolved, the story will continue to shape how firms and workers manage conduct risk and external oversight in global markets.