Hazem Shawki, a former Goldman Sachs Group, Inc banker who was involved in a 1Malaysia Development Bhd (1MDB) mega deal with fraudster Jho Low, has been appointed to run UBS’ investment bank in the Middle East. Shawki, who was working for Goldman Sachs in Dubai in 2012, was deeply involved with Jho Low and the 1MDB scandal.
According to American journalist Tom Wright, Shawki was envious of the money that Tim Leissner, another Goldman partner, was making due to his connection with Jho Low, who was running Malaysia’s 1MDB state fund. Leissner later pleaded guilty in the US to helping Low steal over US$200 million from 1MDB and is currently awaiting sentencing.
Despite Goldman’s compliance department having concerns about Low, Shawki and other Goldman bankers were keen to get involved in a potentially lucrative deal involving Low in 2012. The deal involved a US$2.2 billion takeover of a US oil company by the subsidiary of a Middle East fund and a Low-owned shell company. Goldman represented the subsidiary of the Middle East fund, even though the bank was fully aware of Low’s involvement as a partner.
Low invested only US$50 million in the takeover of the US oil company. One week later, the subsidiary of the Middle East fund bought out Low’s share of the deal for US$350 million, making Low 600% on his money in a matter of days. After the deal, Shawki told an executive from the Middle East fund that the gargantuan payout was Low’s reward for scouting the deal.
There is no evidence that Shawki, who has never been accused of wrongdoing, was aware that Leissner and Low were stealing money from 1MDB. Similarly, there is no evidence that anyone at Goldman knew that the Middle East fund would buy out Low’s share for such a high amount. However, the situation could have been avoided if executives at Goldman, including Shawki, had raised alarms about Low’s involvement instead of chasing profits. The bank made a whopping US$8 million fee as an adviser on the deal.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | 🇺🇸 🇲🇾 🇦🇪 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Jho Low, Hazem Shawki, Tim Leissner, Tom Wright |
| Companies | Whale Hunting, Middle East fund, 1Malaysia Development Bhd (1MDB), Goldman Sachs Group, Inc, UBS |
| Currencies | US Dollar |
| Securities | None |
