Whistleblower site Sarawak Report said the 200-page document filed in a New York court point to fresh evidence of deliberate misconduct related to fugitive Low Taek Jho, which could result in its licence being revoked.
It alleged that everyone from the top down at the bank was aware of the role played by Low, better known as Jho Low, in the 1MDB scandal.
They show among others that former CEO Lloyd Blankfein had met Jho Low despite being warned about the latter’s suspicious character as well as the nature of 1MDB deals.
Sarawak Report also mentioned previously unknown accusations against top officers, including a claim that money raised by the bank for 1MDB through questionable bond deals was stolen due to negligence, deliberately aided by the bank’s executives.
“Goldman underwrote US$6.5 billion of 1MDB debt in three rapid-fire offerings that were awarded without any bidding process, netting the bank an astronomical US$600 million in fees – 200 times the typical sum for such deals.
“Goldman did so amid a sea of red flags, including repeated protests from within and outside the bank, which included explicit warnings about the very type of potential fraud that ultimately occurred,” said the report quoting court documents.
It further accused Goldman executives of siphoning the money to fund former prime minister Najib Razak, pay off co-conspirators in Malaysia and the Middle East, and “finance the playboy lifestyle of the key architect of the sprawling fraud, Low Taek Jho”.
The suit also said the bank leadership had lied to and misled its shareholders until as recently as December 2018, some seven months after Najib’s fall from grace.
“When facts demonstrating Goldman’s central role came to light, its shareholders suffered huge losses as the bank’s stock price fell precipitously on the market’s astonishment that Goldman had actively facilitated – and handsomely profited from – the unprecedented global fund,” read the court filing.
Sarawak Report said the “most damning” detail about the class action was the possibility of Goldman Sachs and Jho Low striking a fifth, highly suspect deal involving the bank’s most senior officials in the Middle East.
It said Jho Low sought help from Goldman to tap into the international stock market with the International Petroleum Investment Company (IPIC) as guarantor.
“Low informed Tim Leissner and Roger Ng (former Goldman bankers) that to secure the guarantee, they would have to pay kickbacks to government officials in Malaysia and Abu Dhabi. Ng relayed the message to Andrea Vella (Goldman partner) and Vella agreed.
“Goldman proved happy to oblige, disregarding the following warning signs while quashing those within the bank who dared to call attention to the obvious.”
The shareholders also claim in their suit that senior banker David Ryan and Alex Turnbull, the son of former Australian prime minister Malcolm Turnbull, are damaging witnesses against Goldman in the case.
The Malaysian government has been engaging with the bank on the amount of compensation over the scandal.
Prime Minister Dr Mahathir Mohamad recently said the government had rejected an offer by Goldman because it was deemed too low.