Kimora Lee’s Simmons husband Tim Leissner, a former Goldman Sachs partner in Asia who pleaded guilty and agreed to forfeit $43.7 million in 2018, is still weighing on the banks earnings. Last week the Wall Street giant set aside $1.09 billion during the final quarter of the year to settle allegations with the Department of Justice (DOJ) for arranging $6.5 billion in loans for Malaysian development fund 1MDB, that was later ransacked by Leissner and others.
The Breakdown You Need To Know: Goldman is reportedly in talks with the DOJ regarding U.S. bribery laws and may plead guilty, while having to cough up $2 billion. This is all because at least one of its bankers was aware that Malaysian financier Jho Low was involved in the 1MDB bond deals. The banker in the “know” who the DOJ is referring to is Leissner, who CultureBanx reported is married hip hop’s original first lady in December 2013. Since he has pleaded guilty in the case, Leissner is also barred by the Securities and Exchange Commission from working in the industry. Previously, Goldman had declined Low as a client multiple times.
When the charges were initially filed in 2017, Kimora spoke out to WWD and said she and her husband’s finances aren’t connected when it comes to her business endeavors. This is definitely a good thing considering around $4.5 billion was incorrectly managed from 1MDB fund officials and their associates, which include Leissner along with his accomplices between 2009 and 2014. Court documents highlight more than $200 million alone went to Leissner and another alleged co-conspirator.
Banking on Culture: Leisner and his other defendants spent the money like they were living in a real life hip hop music video. The men used the funds to buy luxury U.S. properties and yachts, along with art, as well as paying bribes. Allegedly, they laundered the fraudulent proceeds through U.S. banks. Goldman continues to deny any wrongdoing, though investigators claim the bank made around $600 million in fees for its work with 1MDB.
As this never ending scandal continues to unfold, the firm’s most recent reserve in Q4 2019 cut into its overall profits for the quarter, leading the bank to post earnings per share down 22% from the previous year. Goldman should perhaps turn its attention towards their consumer business, including online retail bank Marcus and its credit card business. Both shot up 23% in revenue, to $228 million during the fourth quarter. Also, all hope wasn’t lost at the end of the year because Goldman made nearly $300 million after selling its shares in Uber.
This article originally appeared on Forbes.
