U.S. financial institution acknowledges investigations related to Malaysian development fund scheme

Financial Crimes DOJ

On November 2, a New York-based financial institution disclosed in its Form 10-Q filing that it had received subpoenas and requests for documents and information from multiple government agencies as part of investigations relating to matters involving a Malaysian development fund. The filing acknowledged the indictments and guilty plea of a former participating managing director of the financial institution, and a former managing director, which indicated that they “knowingly and willfully circumvented” the financial institution’s internal accounting controls.  The filing further stated that the financial institution is cooperating with the DOJ and other investigations relating to the company.

For prior coverage of the scheme, please see here and here.