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Goldman Accused of Betrayal to Curry Malaysian PM’s Favor

July 27, 2016, 4:00 AM

Goldman Sachs Group Inc. has another Malaysia problem.

The New York-based bank, already under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd, is now accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak, who controlled the sovereign wealth fund (Primus Pac. Partners 1 LP v. Goldman Sachs Grp. Inc., N.Y. Sup. Ct., 653885/2016, complaint 7/26/16).

Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion ...