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Not that 1MDB

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Good morning and Happy Monday! Goldman Sachs to pay billions for its role in the 1MDB scandal, Walmart filed a preemptive lawsuit against the government over an opioid case, and Amazon workers call to shut down warehouses to get a day off to vote.

 

FINANCE

Goldman Sachs Unit Pleaded Guilty in 1MDB Fraud

Reuters

The 1MDB — no, not IMDb where you go to stalk movie stars — scandal finally has somewhat of a resolution. Goldman Sachs has admitted criminal wrongdoing by its Malaysian subsidiary when it took part in a scheme to pay $1 billion in bribes to foreign officials.


In total, the bank will pay more than $5 billion in penalties to regulators around the world for its role in the scandal. 

 

Tell me a bedtime story — a story on fraud and bribes

Way back in 2012, Goldman helped Malaysia’s sovereign wealth fund, 1Malaysia Development Berhad (1MDB) to arrange the sale of bonds to raise $6.5 billion — which netted the bank $600 million in fees. 


The money was meant for the people of Malaysia. Instead, the country’s leaders and their cohorts looted more than $2.7 billion to fund a lavish lifestyle. If you’re wondering where the $2.7 billion goes…

  • Paintings by van Gogh and Monet

  • A mega-yacht

  • A grand piano made of clear acrylic that was given to a supermodel

  • A boutique hotel in Beverly Hills

  • Ironically, financing “The Wolf of Wall Street” 

Bringing the curtain down

The bank officially entered the guilty plea for Goldman’s Malaysian arm last week, which admitted that the bank had “knowingly and willingly” conspired to violate the Foreign Corrupt Practices Act. 


Meanwhile, the parent company of the bank entered into a three-year deferred prosecution agreement on a similar charge. And, in a rare move, Goldman has moved to recoup or withhold more than $100 million in executive compensation.



 

BUSINESS

Walmart Preemptively Sued DoJ Over Opioid Case

Walmart

Walmart – home of great deals and… initiative? 


Well, the latter is exactly what it displayed last week when the retailer filed a preemptive lawsuit against the federal government in response to threats of legal action by the Department of Justice and Drug Enforcement Agency to hold Walmart pharmacists responsible, in part, for the opioid crisis.

 

Here’s a breakdown of what’s going on:

  • Walmart filed a lawsuit against the federal government to seek clarity on the roles and responsibilities of pharmacists and pharmacies in filling opioid prescriptions. 

  • The retailer is bringing the lawsuit because it said that certain officials in the U.S. Justice Department are threatening to sue the company, claiming that pharmacists should have refused to fill otherwise valid opioid prescriptions. 

  • Walmart, which has one of the largest pharmacy chains in the country, pointed out that there’s no federal law “requiring pharmacists to interfere in the doctor-patient relationship to the degree DoJ is demanding.”

 

 

BUSINESS

Amazon Workers Threaten Shutdown Over Voting

Unsplash

Jeff Bezos is in for quite the scare this Halloween. Amazon workers are enlisting help from groups around the country to help shut down Amazon warehouses temporarily on Halloween if the company doesn’t give all its employees a paid day off to vote. 

 

Your move, Bezos

Here are more details about the move: 

  • In the past week, more than 6,500 Amazon corporate and tech workers have supported a proposal for all workers to get a paid day off to vote. 

  • Some have even written to Bezos. 

  • With no response from Bezos, the Amazon Employees for Climate Justice is calling for other organizations to help close warehouses for 15 minutes on Halloween by blocking the exits used by Amazon’s trucks and vans.

 

 

APPENDIX

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