Goldman Sachs Subsidiary Pleads to US Charges in 1MDB Probe

Goldman Sachs Subsidiary Pleads to US Charges in 1MDB Probe
Construction workers chat in front of a billboard for state investment fund 1 Malaysia Development Berhad (1MDB) at the fund's flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia, on May 14, 2015. Joshua Paul/AP Photo
The Associated Press
Updated:

WASHINGTON—A subsidiary of Goldman Sachs pleaded guilty on Thursday and agreed to pay more than $2.9 billion in a foreign corruption probe tied to the Malaysian 1MDB sovereign wealth fund, which was looted of billions of dollars in a corruption scandal.

In addition, several current and former top executives at Goldman will have to return millions of dollars in pay and bonuses to the company, a financial penalty for those in charge when the scandal unfolded.