KUALA LUMPUR (Reuters) – Malaysia has filed felony prices in opposition to 17 fresh and outmoded directors at subsidiaries of Goldman Sachs Neighborhood Inc (GS.N) in a multi-billion-buck corruption investigation at remark fund 1MDB, the attorney in vogue talked about on Friday.

FILE PHOTO – Men whisk past a 1Malaysia Constructing Berhad (1MDB) billboard at the fund’s flagship Tun Razak Trade improvement in Kuala Lumpur March 1, 2015. REUTERS/Olivia Harris/File Portray

Goldman Sachs has been under scrutiny for its role in serving to to fetch $6.5 billion by bond offerings for 1Malaysia Constructing Bhd (1MDB), the topic of corruption and cash laundering investigations in no longer no longer as much as six nations.

Friday’s prices had been brought under a part of the Malaysian Capital Markets and Products and services Act that holds sure senior executives accountable for any offences that would possibly per chance well possibly also were dedicated, Attorney Fashioned Tommy Thomas talked about.

“Custodial sentences and felony fines will be sought in opposition to the accused … given the severity of the blueprint to defraud and counterfeit misappropriation of billions in bond proceeds,” Thomas talked about in an announcement.

The contributors charged consist of Richard Gnodde, chief government of Goldman Sachs Global and Michael Sherwood, vice chairman of Goldman Sachs Neighborhood Inc and co-chief government officer of Goldman Sachs global, Thomas added.

Goldman Sachs didn’t straight away reply to a demand for observation.

It has consistently denied wrongdoing and talked about sure participants of the outmoded Malaysian authorities and 1MDB lied to Goldman Sachs, out of doorways counsel and others about the usage of transaction proceeds.

Closing year, Malaysia filed felony prices in opposition to Goldman Sachs and two of the U.S. monetary institution’s outmoded workers in reference to 1MDB. The U.S. Department of Justice is investigating the monetary institution for its role as underwriter and arranger of the bond provide.

An estimated $4.5 billion used to be misappropriated from 1MDB by fund officers and their mates between 2009 and 2014, the U.S. Justice Department has talked about.

Tim Leissner, a outmoded partner of Goldman Sachs in Asia, pleaded guilty closing August to conspiracy to launder cash and conspiracy to violate the Distant places Unsightly Practices Act and agreed to forfeit $43.7 million.

Malaysia has talked about it used to be seeking as much as $7.5 billion in reparations from Goldman over its dealings with 1MDB, region up in 2009 by then high minister Najib Razak.

Najib, ousted in an election closing year, is facing dozens of felony prices linked to 1MDB. He has pleaded no longer guilty and denied wrongdoing.

Reporting by A. Ananthalakshmi; Editing by Tom Hogue and Clarence Fernandez