Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 1 of 48 PageID #: 274 1 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - -X : 18-CR-439 (MKB) UNITED STATES OF AMERICA, : : Plaintiff, : : United States Courthouse -against: Brooklyn, New York : JOHN DOE, : : Tuesday, August 28, 2018 Defendant. : 10:30 a.m. - - - - - - - - - - - - - - - -X 9 10 11 12 13 14 ************************************************************* S E A L E D P R O C E E D I N G S ************************************************************* 15 16 17 18 19 20 TRANSCRIPT OF CRIMINAL CAUSE FOR PLEADING BEFORE THE HONORABLE MARGO K. BRODIE UNITED STATES DISTRICT JUDGE 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 2 of 48 PageID #: 275 SEALED PROCEEDINGS 1 2 A P P E A R A N C E S: For the Government: RICHARD P. DONOGHUE, ESQ. UNITED STATES ATTORNEY Eastern District of New York 271 Cadman Plaza East Brooklyn, New York 11201 BY: JACQUELYN KASULIS, ESQ. DREW ROLLE, ESQ. Assistant United States Attorney For the Defendant: FREEH, SPORKIN & SULLIVAN, LLP 2550 M Street Northwest Washington, D.C. 20037 BY: ROBERT O'NEILL, ESQ. HONORABLE EUGENE SULLIVAN, ESQ. EUGENE SULLIVAN, II, ESQ. 3 4 5 6 7 8 9 10 11 Court Reporter: DAVID R. ROY, RPR 225 Cadman Plaza East Brooklyn, New York 11201 drroyofcr@gmail.com 12 13 14 2 Proceedings recorded by Stenographic machine shorthand, transcript produced by Computer-Assisted Transcription. 15 P R O 16 C E E D I N G S --oo0oo-- 17 18 (Closed courtroom, sealed proceedings.) 19 THE COURTROOM DEPUTY: 20 pleading, Docket Number 18-CR-439, USA versus John Doe. 21 22 23 Criminal cause for Counsel, please state your appearances for the record. MS. KASULIS: On behalf of the United States, 24 Jacquelyn Kasulis and Drew Rolle for the U.S. Attorney's 25 Office in the Eastern District of New York. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 3 of 48 PageID #: 276 SEALED PROCEEDINGS 1 THE COURT: Good morning, Counsel. 2 MR. ROLLE: Good morning, Judge. 3 MS. KASULIS: We also have Jennifer Ambuehl and 4 Mary Ann McCarthy and Woo Lee, W-O-O; L-E-E, from the Money 5 Laundering and Asset Recovery Section of the Criminal 6 Division. 7 Section of the Criminal Division. And then we have Kate Nielsen from the Fraud 8 THE COURT: 9 MS. KASULIS: Okay. 10 THE COURT: 11 MR. O'NEILL: 12 Thank you. Good morning, Your Honor. Good morning, everyone. Robert O'Neill for the Defendant Tim Leissner. 13 THE COURT: 14 Good morning, Mr. Leissner. 15 THE DEFENDANT: 16 MR. O'NEILL: Good morning. Good morning, Your Honor. Also present are two attorneys that 17 I am also working with, Eugene Sullivan and Eugene 18 Sullivan, II. 19 MR. SULLIVAN: 20 MR. SULLIVAN, II: 21 THE COURT: 22 And as I indicated, you can remain seated 23 Good morning. Good morning, Your Honor. Good morning to you all. throughout the proceedings. 24 MR. O'NEILL: 25 THE COURT: Sure. Okay. Thank you. As I understand it, David R. Roy, RPR, CSR, CCR Official Court Reporter 3 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 4 of 48 PageID #: 277 SEALED PROCEEDINGS 1 Mr. Leissner -- is that how you pronounce your name? 2 THE DEFENDANT: 3 THE COURT: 4 Yes, Your Honor. -- that you are going to waive indictment and plead guilty to a two-count information. 5 Is that correct? 6 THE DEFENDANT: 7 THE COURT: 8 Yes, Your Honor. All right. So I am going to have her administer the oath to you. 9 THE COURTROOM DEPUTY: 10 right hand. 11 T I M Would you please raise your L E I S S N E R, 12 called as a witness having been 13 first duly sworn/affirmed, was examined and 14 testified as follows: 15 THE COURTROOM DEPUTY: 16 17 18 19 20 Please state and spell your name for the record. THE DEFENDANT: It's Tim Leissner, T-I-M, L-E-I-S-S-N-E-R. THE COURT: Thank you. Please be seated, Mr. Leissner. 21 THE DEFENDANT: 22 THE COURT: Thank you, Your Honor. I want to make sure you understand 23 that now that you are under oath, if you answer any of my 24 questions falsely, you could face another prosecution for 25 perjury or for making a false statement. David R. Roy, RPR, CSR, CCR Official Court Reporter 4 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 5 of 48 PageID #: 278 SEALED PROCEEDINGS 1 Do you understand? 2 THE DEFENDANT: 3 THE COURT: 4 6 THE COURT: Forty-eight. All right. How far did you get in school? 8 10 And how old are you, Mr. Leissner? THE DEFENDANT: 9 Yes, Your Honor. Okay. 5 7 5 THE DEFENDANT: doctorate. I got a Ph.D. at the end, a I have a Master's Degree and Bachelor's in business. 11 THE COURT: 12 And you speak and understand English, correct? 13 THE DEFENDANT: 14 THE COURT: 15 All right. communicate with your client in English? MR. O'NEILL: 17 THE COURT: Yes, Your Honor. You do not have to stand. I know it is -- 19 MR. O'NEILL: 20 THE COURT: 21 Yes, I do, Your Honor. Counsel, have you been able to 16 18 So you are quite educated. Yes, Your Honor. -- the natural reaction, but you can remain seated in the courtroom unless there is a jury. 22 MR. O'NEILL: 23 THE COURT: Thank you. Mr. Leissner, are you currently or 24 have you recently been under the care of a doctor or a 25 psychiatrist? David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 6 of 48 PageID #: 279 SEALED PROCEEDINGS 1 THE COURTROOM DEPUTY: 2 THE COURT: No, Your Honor, I have not. Are you currently or have you recently 3 been treated or hospitalized for any type of addiction, 4 including drug or alcohol addiction? 5 THE COURTROOM DEPUTY: 6 THE COURT: 7 Have you taken any drugs, medicine, or pills -- 8 THE DEFENDANT: 9 THE COURT: 10 -- or had any alcoholic beverages THE COURTROOM DEPUTY: THE COURT: 14 THE DEFENDANT: 15 THE COURT: 16 THE DEFENDANT: 17 THE COURT: Not even a drink? Right. Okay. Is your mind clear today? Yes, Your Honor. And do you understand what is happening today? 19 THE DEFENDANT: 20 THE COURT: 21 No, Your Honor, I have not even had a drink. 13 18 No. within the last 48 hours? 11 12 No, Your Honor, I have not. Yes, Your Honor. Okay. You have been charged in a two-count information. 22 Have you had a chance to review that information? 23 THE DEFENDANT: 24 25 Yes, Your Honor, I have with my counsel. THE COURT: And do you understand that the charges David R. Roy, RPR, CSR, CCR Official Court Reporter 6 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 7 of 48 PageID #: 280 SEALED PROCEEDINGS 7 1 are conspiracy to violate the Foreign Corrupt Practices Act 2 and conspiracy to commit money laundering? 3 THE DEFENDANT: 4 THE COURT: Yes, Your Honor, I understand. Because these are felony crimes, you 5 have a constitutional right to be charged by way of an 6 indictment by a grand jury, but you can waive that right and 7 instead consent to be charged by the United States Attorney 8 by way of an information. 9 felony charges against you have been brought by way of an Instead of an indictment, these 10 information by the U.S. Attorney's Office. 11 indictment, you may not be charged with a felony unless a 12 grand jury finds and returns an indictment and finds that 13 there is probable cause to charge you. 14 indictment, the Government may present the case to the 15 grand jury and the grand jury, they might or they might not 16 indict you. 17 explained to you, is comprised of at least 15, but not more 18 than 23 persons and at least 12 of them would have to vote 19 to indict you. Unless you waive If you do not waive A grand jury, as I am sure your lawyers have 20 Do you understand that? 21 THE DEFENDANT: 22 THE COURT: Yes, Your Honor. They would have to find that there is 23 probable cause to believe that you have committed the two 24 crimes. 25 THE DEFENDANT: Yes, Your Honor, and I understand. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 8 of 48 PageID #: 281 SEALED PROCEEDINGS 1 THE COURT: If you waive indictment by the 2 grand jury, the case will proceed against you by way of the 3 information charged by the U.S. Attorney as though you had 4 been indicted. 5 6 Have you discussed the matter of waiving your right to indictment by a grand jury with your attorneys? 7 THE DEFENDANT: 8 THE COURT: 9 Yes, Your Honor, I have. And do you understand your right to have an indictment returned by the grand jury? 10 THE DEFENDANT: 11 THE COURT: 12 Have any threats or promises been made to you to induce you to waive indictment? 13 THE DEFENDANT: 14 THE COURT: 15 No, Your Honor, they have not. Do you wish to waive your right to indictment by a grand jury? 16 THE DEFENDANT: 17 THE COURT: 18 Yes, Your Honor. Counsel, do you see any reason why your client should not waive indictment? 19 MR. O'NEILL: 20 THE COURT: 21 Yes. Indictment. No, Your Honor. Okay. I have before me a Waiver of May I have the parties please sign it. 22 There you go. 23 MS. KASULIS: 24 THE COURT: 25 MS. KASULIS: We have it -Is there one that is already signed? We do have one, Your Honor. David R. Roy, RPR, CSR, CCR Official Court Reporter 8 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 9 of 48 PageID #: 282 SEALED PROCEEDINGS 1 2 3 4 THE COURT: Okay. Can you show it to Mr. Leissner so I can confirm that that is actually his signature? THE DEFENDANT: Yes, Your Honor, that's my signature. 5 THE COURT: 6 I find that the Waiver of Indictment is knowingly 7 Okay. So I will sign this order. and voluntarily made and I accept it. 8 Here you go. 9 So now I am going to arraign you on the charges in 10 the information. 11 two conspiracy charges, and you have informed me, 12 Mr. Leissner, that you have reviewed a copy of the 13 information with your attorney. 14 15 I have already told you what they are, the Counsel, would you like me to read the information to your client or do you waive the read-in? 16 MR. O'NEILL: 17 THE COURT: 18 Now, Mr. Leissner, because of your wish to plead 19 guilty to the two counts of the information, I need to ask 20 you a number of questions. 21 need to ensure myself that you are making this decision 22 knowingly and voluntarily. 23 certain rights to you. 24 any time you do not understand my questions, let me know and 25 I will reword the question. Your Honor, we waive the read-in. Okay. This is a serious decision and I I am going to also explain With regard to the questions if at If at any time you need to David R. Roy, RPR, CSR, CCR Official Court Reporter 9 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 10 of 48 PageID #: 283 SEALED PROCEEDINGS 10 1 consult with your lawyers, let me know and I will take a 2 break for you to do that. 3 THE DEFENDANT: 4 THE COURT: 5 I remind you that you are still under oath. 6 THE DEFENDANT: 7 THE COURT: 8 And so you must answer my questions Mr. -- I am not sure which lawyer I should refer to you. Is it you -- 11 MR. O'NEILL: 12 THE COURT: 13 questions? MR. O'NEILL: 15 THE COURT: Yes. Okay. Tell me your name again, please, sir. 17 MR. O'NEILL: 18 THE COURT: 19 MR. O'NEILL: 20 THE COURT: 21 Yes, Your Honor. -- do I address you with the 14 16 Yes. truthfully. 9 10 Thank you, Your Honor. O'Neill. Mr. O'Neill. Yes, Your Honor. All right. Mr. O'Neill, have you discussed the matter of pleading guilty with your client? 22 MR. O'NEILL: 23 THE COURT: 24 be waiving by pleading guilty? 25 Okay. I have, Your Honor. Does he understand the rights he would MR. O'NEILL: Yes, Your Honor. We went over the David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 11 of 48 PageID #: 284 SEALED PROCEEDINGS 1 2 rules and the colloquy. THE COURT: Okay. Is he capable of understanding 3 the nature of these proceedings? 4 MR. O'NEILL: 5 THE COURT: 6 Mr. Leissner's competence to plead at this time? MR. O'NEILL: 8 THE COURT: 10 11 Have you advised him of the maximum as the forfeiture allegations in the information? MR. O'NEILL: applicable benefits. 13 THE COURT: 15 None whatsoever, Your Honor. and minimum sentence and fine that can be imposed, as well 12 14 Yes, Judge. Do you have any doubt as to 7 9 11 Yes, Judge. We went over all the And have you discussed with him the effect of the sentencing guidelines? MR. O'NEILL: I have, Your Honor. We have not 16 come to a complete computation, for obvious reasons. 17 explained to him the whole sentencing process, that 18 Pretrial Services will get involved, there will be a 19 presentence report, and the Court ultimately makes the 20 determination. 21 maximums are, what the minimums are, and they can be 22 anywhere in between. 23 THE COURT: 24 25 I have He understands the parameters, what the Okay. And that Probation, rather than Pretrial would get involved? MR. O'NEILL: That's correct, Your Honor. David R. Roy, RPR, CSR, CCR Official Court Reporter I Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 12 of 48 PageID #: 285 SEALED PROCEEDINGS 1 12 misspoke, Judge. 2 THE COURT: Okay. 3 All right. Mr. Leissner, you have reviewed a copy 4 of the information, correct? 5 THE DEFENDANT: 6 THE COURT: 7 Yes, Your Honor, I have. I know I have asked you that a number of times. 8 THE DEFENDANT: 9 THE COURT: No, I have reviewed it, correct. So the two charges in the information, 10 I am going to just spend a little bit of time discussing 11 that and the elements of the crime to make sure you 12 understand what it is you are pleading guilty to. 13 THE DEFENDANT: 14 THE COURT: Thank you, Your Honor. Count 1 charges that between 15 January 2009 and October 2014 you, and others, knowingly and 16 willfully conspired to violate the Foreign Corrupt Practices 17 Act. 18 Count 2 charges that in or about January of 2009 19 and October of 2014 you, and others, knowingly and 20 intentionally conspired to commit money laundering. 21 Now, and I know your attorney has gone over this 22 with you, but I am going to try to just explain to you in 23 general terms what these charges mean. 24 you know, means that you and at least one other person acted 25 for purposes of committing a crime, and the conspiracies The conspiracy, as David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 13 of 48 PageID #: 286 SEALED PROCEEDINGS 13 1 here charge certain overt acts. 2 to convict you at a trial of conspiracy, and this is just 3 conspiracy generally, they would have to show that two or 4 more persons entered into an unlawful agreement, the 5 agreement that is charged in the information, starting on or 6 about January 2009 and continued through the end of the 7 charge period, which I believe is 2014; that you knowingly 8 and willfully become a member of the conspiracy; that one of 9 the members, it does not have to be you, of the conspiracy 10 knowingly committed at least one of the overt acts charged 11 in the indictment, and there are a number of overt acts 12 charged with regard to Count 1. 13 THE DEFENDANT: 14 THE COURT: In order for the Government Yes, Your Honor. Yes, the overt acts are charged with 15 regard to Count 1. 16 to further some object of the conspiracy. 17 generally the law on conspiracy and what the Government 18 would have to prove at a trial against you. And that the overt acts were committed So that is 19 With regard to the Foreign Corrupt Practices Act, 20 you are charged under the Antibribery Division, and you are 21 charged both as an issuer, as I understand it, and a 22 domestic concern. 23 Is that accurate, Counsel? 24 MS. KASULIS: 25 THE COURT: Yes, Your Honor. Okay. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 14 of 48 PageID #: 287 SEALED PROCEEDINGS 1 2 MS. KASULIS: 14 The employee or agent of an issuer under domestic concern. 3 THE COURT: And so the elements would be the same 4 for both, except they could prove that you are one or the 5 other. 6 THE DEFENDANT: 7 THE COURT: Yes. And to convict you at the trial, 8 the Government would have to prove that you are -- you were 9 an employee or agent of an issuer as charged in the 10 indictment; that you made use of the mail or any other means 11 or instrumentality of interstate commerce, which could be 12 wires also in addition to the mail, in furtherance of an 13 offer, payment, promise to pay, or authorization of the 14 payment of anything of value to either a foreign official or 15 any person with knowledge that all or a portion of such 16 money or thing of value would be offered, given, or promised 17 directly or indirectly to any foreign official; that this 18 was done corruptly and for the purpose of influencing an 19 official act or an official in his official capacity or 20 inducing a foreign official to do or omit an act in 21 violation of that official's lawful duty or securing any 22 improper advantage or inducing the foreign official to use 23 his influence with a foreign government or instrumentality 24 to effect or influence any act or decision of such 25 government or instrumentality, and that the purpose was to David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 15 of 48 PageID #: 288 SEALED PROCEEDINGS 15 1 assist the issuer, you, in obtaining -- well, you as an 2 employee or general of the issuer, obtaining or retaining 3 business for or with or directly in business to any person 4 and that you did all of this willfully. 5 Do you understand those? 6 THE DEFENDANT: 7 THE COURT: Yes, Your Honor, I do understand. Okay. So that is more or less what 8 the Government would have to prove if it were to go to 9 trial. Again, you are not charged with a substantive crime 10 of violating the Foreign Corrupt Practices Act, you are 11 charged with conspiring to do so. 12 would have to understand what that means in order to 13 determine whether or not you conspired to commit that crime. 14 Ms. Kasulis? 15 MS. KASULIS: But at a trial, the jury So in the information we are also 16 alleging violation of 78dd-3. 17 THE COURT: 18 MS. KASULIS: Okay. Which is not in the elements 19 checklist that we sent over to Your Honor. 20 that. 21 taken within the United States in furtherance of the 22 violation of the FCPA, conspiracy to violate the FCPA, and 23 we have alleged that that prong of the FCPA was also 24 violated, conspiracy to violate it, as set forth in the 25 information, and there were actions taken by Mr. Leissner in We apologize for To establish dd-3 liability, action needed to be David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 16 of 48 PageID #: 289 SEALED PROCEEDINGS 1 the United States -- 2 THE COURT: 3 MS. KASULIS: 4 -- separate and apart from dd-1 and dd-2 5 16 Within the U.S.? Exactly. liability. 6 THE COURT: Okay. And then you are also charged 7 with circumvention of internal controls, and to prove that, 8 the Government would have to show that you somehow 9 circumvented the issuer's internal controls and caused 10 transactions to be executed that were not authorized by the 11 issuer or reported promptly, and you do so knowingly and 12 willfully. 13 Do you understand that? 14 THE DEFENDANT: 15 THE COURT: Yes, Your Honor. Okay. With regard to the money 16 laundering count, I believe you are charged under two 17 different provision, 1956(a)(2)(A) and 1957(a). 18 As to 1956(a)(2)(A), you are charged with 19 attempting -- the elements that the Government would have to 20 prove at trial, they would have to show that you attempted 21 to -- or that you transported, transmitted, or transferred 22 money instruments or funds to or through the United States 23 for the purpose of promoting violations of the 24 Foreign Corrupt Practices Act and also the Malaysian Penal 25 Law. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 17 of 48 PageID #: 290 SEALED PROCEEDINGS 1 17 And then with regard to 1957(a), the Government 2 would have to show that you engaged in or attempted to 3 engage in a monetary transaction in or affecting interstate 4 commerce, and that the monetary transaction involved 5 criminally derived property of a value greater than $10,000; 6 that the property was derived from specified unlawful 7 activity, and I believe here the specified unlawful 8 activities in the indictment are the same as I just 9 indicated, violation of the FCPA, and also of the Malaysian 10 11 Penal Law. And fourth, that you acted knowingly and with 12 knowledge that the transaction involved proceeds of a 13 criminal offense, and that the transaction took place in the 14 United States, or that you are a United States person. 15 16 I believe that covers all of the elements of the two charges in the indictment. 17 Is that correct, Counsel? 18 MR. ROLLE: 19 It does, Your Honor. There is one additional theory of liability for the money laundering -- 20 THE COURT: Okay. 21 MR. ROLLE: -- as recited in Count 2, which is 22 Subsection 1956(a)(2)(B)(i), which we've alleged that these 23 transactions were also done intended in whole or in part to 24 conceal or disguise the nature, location, source, ownership, 25 and control of the proceedings of the S underlying unlawful David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 18 of 48 PageID #: 291 SEALED PROCEEDINGS 1 activity. 2 THE COURT: Okay. 3 MR. ROLLE: And of which are the same SUA's that 4 we've alleged as Your Honor has recounted in the other 5 provision of 1956. 6 THE COURT: Thank you, Counsel. 7 MR. ROLLE: Yes, Your Honor. 8 THE COURT: So do you understand, Mr. Leissner, 9 10 18 the elements of the two counts that you wish to plead guilty to? 11 THE DEFENDANT: 12 THE COURT: 13 THE DEFENDANT: 14 THE COURT: 15 THE DEFENDANT: 16 THE COURT: Yes, Your Honor, I understand. Do you have any questions about them? No, Your Honor. Okay. Thank you. Have you had sufficient time to 17 discuss with your attorney whether or not to plead guilty, 18 sir? 19 THE DEFENDANT: 20 THE COURT: Yes, Your Honor, I have. And are you fully satisfied with 21 Counsel's representation and advice given to you by your 22 attorneys in this case? 23 (Pause in proceedings.) 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor, I am. Okay. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 19 of 48 PageID #: 292 SEALED PROCEEDINGS 1 2 THE DEFENDANT: 19 I thought I would make him sweat a little bit. 3 THE COURT: 4 THE DEFENDANT: I'm sorry? 5 little bit for that. 6 THE COURT: 7 Okay. 8 THE DEFENDANT: 9 THE COURT: I thought I would make him sweat a Okay. A sense of humor this morning. I'm sorry. I am now going to explain certain 10 rights that you have, and these are rights that you will be 11 giving up by entering a plea of guilty. 12 continue to plead not guilty. 13 charge, you can decide to plead not guilty to these charges 14 and to proceed to trial. 15 guilty. You have a right to Even if you are guilty of the No one can be forced to plead 16 Do you understand? 17 THE DEFENDANT: 18 THE COURT: 19 THE DEFENDANT: 20 THE COURT: Yes, Your Honor, I understand. Okay. Thank you. You would have a right under the 21 Constitution and Laws of the United States to a speedy and 22 public trial by a jury. 23 Do you understand? 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor. At the trial you would be presumed to David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 20 of 48 PageID #: 293 SEALED PROCEEDINGS 1 be innocent and the Government would have to prove you 2 guilty beyond a reasonable doubt. 3 Do you understand that? 4 THE DEFENDANT: 5 THE COURT: Yes, Your Honor. You have the right to the assistance 6 of counsel for your defense. 7 counsel, I would appoint counsel to represent you at every 8 stage of the proceeding. 9 20 If you were not able to afford Do you understand that? 10 THE DEFENDANT: 11 THE COURT: Yes, Your Honor. At trial, you would have the right to 12 see and hear all witnesses and to have them cross-examined 13 in your defense. 14 Do you understand? 15 THE DEFENDANT: 16 THE COURT: Yes, Your Honor. You would have the right on your own 17 part to decline to testify unless you voluntarily elected to 18 do so. 19 Do you understand? 20 THE DEFENDANT: 21 THE COURT: 22 Yes, Your Honor. You have the right to compel the attendance of witnesses to testify in your defense. 23 Do you understand? 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor. Should you decide not to testify at a David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 21 of 48 PageID #: 294 SEALED PROCEEDINGS 21 1 trial or not to put on any evidence, these facts could not 2 be used against you. 3 Do you understand? 4 THE DEFENDANT: 5 THE COURT: Yes, Your Honor. By entering a plea of guilty, and if I 6 accept your plea, there will be no trial of any kind and you 7 would have waived and given up your right to a trial as well 8 as those rights associated with the trial as I have just 9 described to you. 10 Do you understand? 11 THE DEFENDANT: 12 THE COURT: Yes, Your Honor. There will be no further trial of any 13 kind and no right to appeal from the judgment of guilty. 14 will simply enter a judgment of guilty on the basis of your 15 guilty plea. 16 Do you understand? 17 THE DEFENDANT: 18 THE COURT: Yes, Your Honor. If you plead guilty, I will have to 19 ask you questions as to what you did in order to satisfy 20 myself that you are, in fact, guilty of the charges. 21 you will have to answer my questions and acknowledge your 22 guilt. 23 your right not to incriminate yourself. And By answering my questions, you will be giving up 24 Do you understand that? 25 THE DEFENDANT: Yes, Your Honor. David R. Roy, RPR, CSR, CCR Official Court Reporter I Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 22 of 48 PageID #: 295 SEALED PROCEEDINGS 1 THE COURT: 22 Are you willing to give up your right 2 to trial and all those rights that I have just discussed by 3 pleading guilty? 4 THE DEFENDANT: 5 THE COURT: 6 agreement with the Government. Yes, Your Honor. You are pleading pursuant to an 7 Does someone have the original agreement? 8 MS. KASULIS: 9 THE COURT: 10 11 12 13 Yes, Your Honor. Okay. Thank you. I am having the agreement marked as Court Exhibit 1. (Court's Exhibit Number 1 so marked and received in evidence.) 14 THE COURT: 15 THE DEFENDANT: 16 THE COURT: Did you sign this agreement? Yes, Your Honor, I did. Okay. I am going to have my courtroom 17 deputy show you Page 13, and I just need you to confirm that 18 this is your signature above your name? 19 THE DEFENDANT: 20 MS. KASULIS: 21 THE COURT: 23 MS. KASULIS: 25 Your Honor, I also have a fully executed copy of the information -- 22 24 Yes, Your Honor. Okay. -- signed by all the parties. also hand that up to your deputy. THE COURT: Okay. Sure. David R. Roy, RPR, CSR, CCR Official Court Reporter I can Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 23 of 48 PageID #: 296 SEALED PROCEEDINGS 1 MS. KASULIS: 2 THE COURT: 3 Thank you. And has either document changed from what you sent me yesterday? 4 MS. KASULIS: 5 THE COURT: 6 Okay. No, Your Honor. Okay. Thank you. Did you have an opportunity to read and 7 discuss the agreement with your attorneys before you sign 8 it, Mr. Leissner? 9 10 11 THE DEFENDANT: THE COURT: signed it? THE DEFENDANT: 13 THE COURT: Yes, Your Honor, I did. Did you have sufficient time to review it with your attorneys? 15 THE DEFENDANT: 16 THE COURT: 17 Yes, I did, Your Honor. And did you understand it before you 12 14 Yes, Your Honor. And, Mr. O'Neill, did you have sufficient time to review the agreement with your client? 18 MR. O'NEILL: 19 THE COURT: 20 questions about the agreement? Yes, Your Honor. Mr. Leissner, do you have any 21 THE DEFENDANT: 22 THE COURT: 23 THE DEFENDANT: 24 THE COURT: 25 23 No, Your Honor. Okay. I understand. Does the agreement represent your full understanding of your agreement with the Government, David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 24 of 48 PageID #: 297 SEALED PROCEEDINGS 1 Mr. Leissner? 2 THE DEFENDANT: 3 THE COURT: Yes, Your Honor. Has anyone made any promise or 4 assurance that is not in the agreement to persuade you to 5 accept this agreement? 6 THE DEFENDANT: 7 THE COURT: 8 9 10 24 No, Your Honor. Has anyone threatened you in any way to persuade you to accept the agreement? THE DEFENDANT: THE COURT: No, Your Honor. Are you pleading guilty of your own 11 free will because you are guilty? 12 THE DEFENDANT: 13 THE COURT: Yes, Your Honor. And I know you understand that the 14 charges that you are pleading guilty to are felony offenses, 15 and if I accept them, you will be adjudicated guilty and 16 will be deprived of certain valuable civil rights such as 17 the right to vote, the right to hold public office, the 18 right to serve on a jury, and the right to possess a firearm 19 of any kind. 20 THE DEFENDANT: 21 THE COURT: 22 Yes, Your Honor. I understand that you are not a U.S. citizen. 23 Is that correct? 24 THE DEFENDANT: 25 THE COURT: That's correct, Your Honor. And do you understand that your plea David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 25 of 48 PageID #: 298 SEALED PROCEEDINGS 1 of guilty may affect your residency and your status in the 2 United States with immigration authorities? 3 THE DEFENDANT: 4 THE COURT: 5 result of pleading guilty to these charges? THE DEFENDANT: 7 THE COURT: Yes, Your Honor, I understand. Are you still willing to plead guilty despite these likely immigration consequences? 9 THE DEFENDANT: 10 11 Yes, Your Honor. That you will likely be deported as a 6 8 25 THE COURT: Yes, Your Honor. Mr. O'Neill, were all formal plea offers from the Government conveyed to Mr. Leissner? 12 MR. O'NEILL: 13 THE COURT: Okay. 14 All right. I am going to review certain Yes, Your Honor. 15 provisions of the agreement with you to make sure you 16 understand the consequences. 17 THE DEFENDANT: 18 THE COURT: Yes, Your Honor. As to Count 1, pursuant to violate the 19 FCPA, the maximum term of imprisonment is five years with no 20 minimum. 21 three years. 22 23 You also face a maximum supervised release term of Do you understand what that means, that you would be on supervision after serving any time? 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor. If you violate your supervision in any David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 26 of 48 PageID #: 299 SEALED PROCEEDINGS 26 1 way, you could be sent back to prison for up to two years 2 without any credit for any time already served in custody or 3 on supervision. 4 Do you understand that? 5 THE DEFENDANT: 6 THE COURT: Yes, Your Honor. You also face a maximum fine of 7 $250,000 or twice the gross gain or loss, whichever is 8 greater. 9 Do you understand? 10 THE DEFENDANT: 11 THE COURT: Yes, Your Honor. Restitution is mandatory for this 12 count, and you will be required to repay the full amount of 13 the victims' losses as determined at sentencing. 14 Do you understand that? 15 THE DEFENDANT: 16 THE COURT: Yes, Your Honor. You also agree to $43,700,000 in 17 forfeiture as set forth in the agreement in Paragraphs 6 18 through 12. 19 Counsel, I am just going to change F on Page 3 20 where it says Paragraph 6 through 13. 21 be 6 through 12. I believe that should 22 Do you want to just confirm that? 23 MS. KASULIS: 24 THE COURT: 25 So I set forth in Paragraphs 6 through 12 of the Yes, Your Honor, that is correct. Okay. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 27 of 48 PageID #: 300 SEALED PROCEEDINGS 27 1 agreement, you have agreed to that amount in criminal 2 forfeiture. 3 Do you understand that? 4 THE DEFENDANT: 5 THE COURT: Yes, Your Honor, I do. You will also be responsible for $100 6 special assessment on this count and removal as I have 7 already indicated. 8 THE DEFENDANT: 9 THE COURT: Yes. With regard to Count 2, conspiracy to 10 commit money laundering, there is a maximum term of 11 imprisonment of 20 years, no minimum. 12 maximum supervised release term of three years. 13 violate supervision, you could be sent back to jail for up 14 to two years without any credit for time served for 15 supervised time, as I indicated on the other count also. 16 You also face a If you You also face on this count a maximum fine of 17 $500,000 or twice the value of the monetary instrument or 18 funds involved in the transfer, whichever is greater. 19 face restitution also on this count, and the criminal 20 forfeiture agreement is consistent with your criminal 21 forfeiture on the other count. 22 Do you understand that? 23 THE DEFENDANT: 24 THE COURT: 25 Yes, Your Honor. And I am going to change this paragraph also so it reads 6 through 12. David R. Roy, RPR, CSR, CCR Official Court Reporter You Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 28 of 48 PageID #: 301 SEALED PROCEEDINGS 1 2 28 You also are responsible for $100 special assessment on this count, and removal also on this count. 3 THE DEFENDANT: 4 THE COURT: Yes, Your Honor. And I do want to make sure that you 5 understand that because you are pleading guilty to two 6 separate counts, the sentences could be linked to run 7 consecutive so that you can be sentenced to time on one 8 count and the time sentenced on the second count could be 9 made to run in addition to. 10 Do you understand that? 11 THE DEFENDANT: 12 THE COURT: Okay. 13 All right. Do you understand these possible Yes, Your Honor. 14 consequences of your plea that I have just discussed with 15 you? 16 THE DEFENDANT: 17 THE COURT: Yes, Your Honor. Now, under the guidelines, they are 18 advisory but I do have to consider them in determining what 19 is an appropriate sentence in your case. 20 at a number of factors, such as deterrent factors as I am 21 required to. 22 I will also look Have you discussed with your attorney how the 23 guidelines might define your case? 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor. I cannot determine what your advisory David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 29 of 48 PageID #: 302 SEALED PROCEEDINGS 1 guideline range will be at this time. 2 until sentencing after, as your attorney indicated, the 3 probation department has prepared a presentence report and 4 you and your attorneys and the Government have had an 5 opportunity to review it and make any objections to the 6 facts or to the calculation. 7 ultimately impose may be different from any estimate that 8 you and your attorneys may have given you. 9 Do you understand that? 10 THE DEFENDANT: 11 THE COURT: 29 I will not know that However, the sentence that I Yes, Your Honor. After the initial advisory guideline 12 range has been determined, I do have the authority to move 13 upward or downward, and I do not have to sentence you within 14 the guideline range. 15 Do you understand that? 16 THE DEFENDANT: 17 THE COURT: Yes. Yes, Your Honor. Parole has been abolished, and so to 18 the extent you are sentenced to any jail time, you will have 19 to serve that time. 20 Do you understand that? 21 THE DEFENDANT: 22 THE COURT: Yes, Your Honor. Do the parties have an estimate -- at 23 least the Government has an estimate as to what the 24 guideline range would be in this case? 25 MR. ROLLE: Yes, Your Honor. The guideline David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 30 of 48 PageID #: 303 SEALED PROCEEDINGS 30 1 estimate as calculated by the Government is a range of life, 2 and the basis for that is the base offense level pursuant to 3 2S1.1(a)(1) is the offense level applicable to the 4 underlying crime here, violations of the FCPA, and that 5 level is 48. 6 increased by the value of the bribe in this case is more 7 than $550 million, which increases the base offense level by 8 30. 9 increases it by 2. 10 That is based on the base offense level of 12, There is more than one bribe in this case, which There is an involvement of high level officials, which then increases it by 4, resulting in 48. 11 Turning to the money laundering, because the 12 defendant was convicted under Section 1956, the offense 13 level then increases by 2. 14 sophisticated laundering, use of shell companies, so then it 15 also increased again by 2, resulting in a total offense 16 level of -- 17 18 THE COURT: Since this involved Slow down. You do not have to race through it. 19 MR. ROLLE: -- resulting in a -- 20 THE COURT: The reporter has to keep up with you, 21 Mr. Rolle. 22 MR. ROLLE: 23 -- the total offense level of 52. Thank you, Your Honor. And at a 24 criminal history category of 1 resulting in guidelines range 25 of life. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 31 of 48 PageID #: 304 SEALED PROCEEDINGS 31 1 THE COURT: 2 Counsel, Mr. O'Neill, do you agree with the 3 Okay. Government's estimate of the guideline range? 4 MR. O'NEILL: 5 THE COURT: 6 That is potentially possible, yes. Pull the mic towards you. You need to pull the mic towards you. 7 You are saying that that is potentially possible? 8 MR. O'NEILL: 9 10 That is potentially possible. It's a potential life sentence if all charges were brought upon Mr. Leissner. 11 THE COURT: 12 And, Mr. Leissner, do you understand that these 13 estimates could be wrong? 14 15 16 Okay. THE DEFENDANT: Yes, Your Honor, they could be wrong. THE COURT: Okay. And do you understand that 17 there is no guarantee as to the guidelines range for 18 sentencing? 19 THE DEFENDANT: 20 THE COURT: Yes, Your Honor, I understand. Do you also understand that I have to 21 determine the range and that I am not required to sentence 22 you within the range? 23 THE DEFENDANT: 24 THE COURT: 25 Yes, Your Honor. If the advisory range in the presentence report is different from the guideline range you David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 32 of 48 PageID #: 305 SEALED PROCEEDINGS 1 expect, you could not take your plea back. 2 Do you understand that? 3 THE DEFENDANT: 4 THE COURT: 32 Yes, Your Honor. If your ultimate sentence is different 5 than what you hope it will be, you cannot take your plea 6 back. 7 Do you understand? 8 THE DEFENDANT: Yes, Your Honor. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 33 of 48 PageID #: 306 SEALED PROCEEDINGS 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Under some circumstances the Government may -- the 19 Government and you may have the right to appeal any sentence 20 that I impose. 21 pleading guilty, I believe you have waived or given up your 22 right to appeal or collaterally attack all or part of your 23 sentence if I sentence you, sir, to 300 months or less in 24 custody. 25 However, by entering into this agreement and Do you understand that? David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 34 of 48 PageID #: 307 SEALED PROCEEDINGS 1 THE DEFENDANT: 2 THE COURT: 34 Yes, Your Honor. Mr. Leissner, do you have any 3 questions about the rights you are giving up, the punishment 4 you face, the nature of the charges, the plea agreement, or 5 anything else that you would like to discuss with the Court 6 at this time? 7 8 THE DEFENDANT: Thank you. 9 THE COURT: Are you ready to plead guilty? 10 THE DEFENDANT: 11 THE COURT: 12 No, I don't, Your Honor. Yes, Your Honor. Mr. O'Neill, do you know of any reason why your client should not plead guilty? 13 MR. O'NEILL: 14 THE COURT: 15 MR. O'NEILL: 16 THE COURT: No, Your Honor. Are you aware of any viable defenses? None, Your Honor. Mr. Leissner, what is your plea to 17 Count 1 of the indictment charging you with conspiracy to 18 violate the Foreign Corrupt Practices Act, guilty or not 19 guilty? 20 THE DEFENDANT: 21 THE COURT: Guilty. What is your plea to Count 2 of the 22 indictment charging you with conspiracy to commit -- I'm 23 sorry. 24 just pointed out. 25 I keep saying "indictment," as my courtroom deputy You are pleading guilty to information. THE DEFENDANT: Yes. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 35 of 48 PageID #: 308 SEALED PROCEEDINGS 1 THE COURT: What is your plea to Count 2 of the 2 information charging you with conspiracy to commit money 3 laundering, guilty or not guilty? 4 THE DEFENDANT: 5 THE COURT: 6 Guilty. Are you making the plea of guilty voluntarily and of your own free will? 7 THE DEFENDANT: 8 THE COURT: 9 Yes, Your Honor. Has anyone threatened or forced you to plead guilty? 10 THE DEFENDANT: 11 THE COURT: No, Your Honor. Other than the agreement with the 12 Government, has anyone made any promises that caused you to 13 plead guilty? 14 THE DEFENDANT: 15 THE COURT: 16 35 No, Your Honor. Has anyone made any promises as to what your sentence will be? 17 THE DEFENDANT: 18 THE COURT: No, Your Honor. Okay. So I need you to tell me in 19 your own words what you did to make you guilty of Counts 1 20 and 2, keeping in mind the elements of both crimes as we 21 discussed earlier in the proceeding. 22 THE DEFENDANT: 23 THE COURT: 24 THE DEFENDANT: 25 THE COURT: Your Honor, I wrote a statement. Okay. May I read that? You may. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 36 of 48 PageID #: 309 SEALED PROCEEDINGS 1 THE DEFENDANT: 2 THE COURT: 3 reporter can take it all down. 4 36 Thank you. Just read it slowly so that the court THE DEFENDANT: I have read the information filed 5 by the Government. 6 an employee of Goldman Sachs - Asia, LLC between 7 approximately 2011 and 2016, as well as of other public 8 subsidiaries of Goldman Sachs, which is identified as U.S. 9 Financial Institution Number 1 in the information. As described in the information, I was At all 10 times, I was an agent of Goldman Sachs and was a 11 participating managing director of Goldman Sachs. 12 times concerning the 1MDB business that Goldman Sachs 13 conducted with 1MDB between 2009 and 2014, and which is 14 described in the information, including the negotiation and 15 execution of three bond deals and other transactions, I 16 acted on behalf of, and within the scope of my employment 17 and agency of, Goldman Sachs to acquire and execute the 1MDB 18 transaction in business -- 19 THE COURT: 20 Let me ask you one question. 21 THE DEFENDANT: 22 THE COURT: 23 24 25 At all Slow down. Yes, Your Honor. Did you say that you were employed at Goldman Sachs from 2011 to 2016? THE DEFENDANT: I was employed during that time at Goldman Sachs, but I actually started employment at David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 37 of 48 PageID #: 310 SEALED PROCEEDINGS 1 Goldman Sachs much earlier. 2 that time. 3 4 5 THE COURT: But, yes, I was employed during I only asked because you are allocuting to conduct from 2009 to 2014. THE DEFENDANT: Correct. 6 Goldman Sachs from 1998 to 2016. 7 employment at Goldman Sachs. 8 cause was 2009 through 2014. 9 10 37 THE COURT: Okay. I was an employee at That's the whole entire Development period for this Thank you for that clarification. 11 You may continue. 12 THE DEFENDANT: 1MDB was a strategic investment 13 and development company wholly owned and controlled by the 14 Government of Malaysia. 15 to pursue investment and development projects for the 16 economic benefit of Malaysia and its people. 17 within the scope of my employment and with the intent to 18 benefit Goldman Sachs and myself, as an employee and agent 19 of Goldman Sachs, I entered into a conspiracy with those 20 individuals identified in the Government's information to 21 pay bribes and kickbacks to obtain and then retain business 22 from 1MDB for Goldman Sachs. 23 24 25 THE COURT: As I understood, 1MDB was created While acting Including the person identified as the intermediary who you dealt with who then dealt with -THE DEFENDANT: Yes. David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 38 of 48 PageID #: 311 SEALED PROCEEDINGS 1 THE COURT: 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 38 -- this entity? Yes, that's correct. Okay. That individual would be Jho Low 5 that you're referring to, I think, as Conspirator Number 1, 6 Co-Conspirator Number 1 in the information. 7 THE COURT: 8 THE DEFENDANT: 9 THE COURT: All right. Yes. Please proceed. 10 THE DEFENDANT: 11 The goal of paying bribes and kickbacks was to Yes, Your Honor. 12 influence the government officials to take official action 13 so that Goldman Sachs would receive business from 1MDB. 14 took part in the process of paying some of these bribes and 15 kickbacks. 16 used to pay bribes and kickbacks to government officials 17 would move through the U.S. banking system. 18 knew that funds derived from Project Magnolia, specifically 19 mentioned in the information, would be diverted to me and 20 others, including government officials, through shell 21 companies beneficially owned and controlled by myself and 22 others in U.S. dollars, and those financial transactions 23 would be processed through the United States. 24 the use of shell companies in these fund -- these fund 25 transfers was designed, at least in part, to conceal and I I also knew that some of the funds that would be David R. Roy, RPR, CSR, CCR Official Court Reporter For instance, I I knew that Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 39 of 48 PageID #: 312 SEALED PROCEEDINGS 39 1 disguise the nature, location, source, ownership, and 2 control of the diverted and the stolen funds. 3 The following is one specific instance involving 4 the movement of funds: 5 caused approximately $4.1 million to be wire transferred 6 from a foreign bank account controlled by myself and another 7 individual to the U.S. bank account of a New York jeweler in 8 part to pay for jewelry for the wife of a Malaysian 9 government official. On or about October 10, 2014, I I understood that this payment to the 10 New York jeweler was intended to benefit the Malaysian 11 government official and his wife in order to influence the 12 government official to take official acts that would help 13 provide 1MDB business to Goldman Sachs, for the benefit of 14 Goldman Sachs and myself. 15 conspiracy, I conspired with other employees and agents of 16 Goldman Sachs very much in line of its culture of 17 Goldman Sachs to conceal facts from certain compliance and 18 legal employees of Goldman Sachs, including the fact that 19 Jho Low, who is identified as Co-Conspirator Number 1 in the 20 information, was acting as a intermediary for on behalf of 21 Goldman Sachs, 1MDB, and Malaysian and Abu Dhabi officials. During the course of the 22 As stated in the information, on one occasion in 23 2012, I told a committee at Goldman Sachs that Jho Low was 24 not involved in one of the bond transactions. 25 true. This was not I knew that concealing Jho Low's involvement as an David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 40 of 48 PageID #: 313 SEALED PROCEEDINGS 40 1 intermediary was contrary to Goldman Sachs's stated internal 2 policies and procedures. 3 Goldman Sachs at the time also concealed that we knew that 4 Jho Low was promising and paying bribes and kickbacks to 5 foreign officials to obtain and retain 1MDB business for 6 Goldman Sachs, for the benefit of Goldman Sachs and myself, 7 and using some of the proceeds of the 1MDB bonds to do so. 8 I knew that this was contrary to Goldman Sachs's stated 9 policies and procedures. 10 I and several other employees of As a result of these bribes and kickbacks, and in 11 movement of the funds through the bribes and kickbacks, 12 Goldman Sachs received substantial business from 1MDB. 13 three bond deals and related transactions resulted in 14 substantial fees and revenues for Goldman Sachs, of which 15 and in many cases, it was very proud of at the time. 16 addition, I received large year-end bonuses as an employee 17 and agent of Goldman Sachs. 18 That concludes my statement, Your Honor. 19 THE COURT: 20 Okay. The In I believe that covers all of the elements. 21 Is there anything else the Government would like 22 to add as to any additional evidence it would produce at a 23 trial? 24 25 MS. KASULIS: Yes, Your Honor. The Government would be prepared to introduce evidence at trial that would David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 41 of 48 PageID #: 314 SEALED PROCEEDINGS 41 1 show the use of interstate wires in furtherance of the 2 schemes, and that those wires passed through the 3 Eastern District of New York, among other sources of 4 evidence establishing venue within the Eastern District, 5 such as travel records and the use of wires by 6 Goldman Sachs's employees in the New York City headquarters 7 to communicate regarding the 1MDB bond deals. 8 communications additionally were transported through the 9 Eastern District of New York. 10 THE COURT: So those And I take it that Mr. Leissner would 11 waive any venue and to the extent that there was a challenge 12 to venue in this case? 13 14 THE DEFENDANT: I'm sorry. Let me just ask a question. 15 THE COURT: 16 (Pause in proceedings.) 17 THE DEFENDANT: 18 THE COURT: Sure. Yes, Your Honor, I understand. That even though it appears most of 19 the conduct took place in the Southern District of New York, 20 the Government's argument is that the use of interstate wire 21 is sufficient for venue in the Eastern District of New York. 22 But to the extent that there are any issues, that you would 23 waive challenge to venue -- 24 THE DEFENDANT: 25 THE COURT: Yes, Your Honor. -- and agree to venue here in the David R. Roy, RPR, CSR, CCR Official Court Reporter Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 42 of 48 PageID #: 315 SEALED PROCEEDINGS 1 Eastern District of New York? 2 3 42 THE DEFENDANT: Yes, Your Honor, I would agree to that. 4 THE COURT: All right. 5 All right. Is there anything else that I need to 6 ask Mr. Leissner? 7 MS. KASULIS: 8 THE COURT: 9 No, Your Honor. Okay. Based on the information given to me, my observation of Mr. Leissner and his demeanor here 10 in the courtroom, representation of Counsel, and information 11 from the Government, I find that you are fully competent and 12 capable of entering an informed plea; that you are aware of 13 the nature of the charges and the consequences of pleading 14 guilty; and that the plea of guilty here to both counts of 15 the information is knowingly and voluntary and it is also 16 supported by an independent basis, in fact, containing the 17 essential elements of the offense, and so I, therefore, 18 accept the plea of guilty to both counts of the information, 19 and I adjudicate you guilty of both offenses. 20 As I refer you to the probation department that we 21 discussed earlier, they will interview you. 22 right to have your attorney present at that interview, and 23 they will prepare a presentence investigation report. 24 will have an opportunity to review that, comment upon it, 25 object to anything in it. David R. Roy, RPR, CSR, CCR Official Court Reporter You have the You Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 43 of 48 PageID #: 316 SEALED PROCEEDINGS 1 Give me a date, please. 2 THE COURTROOM DEPUTY: 3 THE COURT: 4 THE COURTROOM DEPUTY: 5 THE COURT: 6 THE COURTROOM DEPUTY: 7 THE COURT: 8 9 January 10th at 10:00 a.m. January -- push it back, please. Later? Yes. January 17th. January 17th at 10:00 a.m. for sentencing. Is there anything else we need to discuss? 10 MR. O'NEILL: 11 THE COURT: 12 MR. O'NEILL: 13 THE COURT: Yes, Your Honor. Bail. If I may, Your Honor? Okay. 14 15 16 17 18 19 20 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter 43 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 44 of 48 PageID #: 317 SEALED PROCEEDINGS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter 44 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 45 of 48 PageID #: 318 SEALED PROCEEDINGS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter 45 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 46 of 48 PageID #: 319 SEALED PROCEEDINGS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 - 17 18 19 20 21 22 23 24 25 David R. Roy, RPR, CSR, CCR Official Court Reporter 46 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 47 of 48 PageID #: 320 SEALED PROCEEDINGS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 THE COURT: 25 Is there anything else? All right. David R. Roy, RPR, CSR, CCR Official Court Reporter 47 Case 1:18-cr-00439-MKB Document 29-1 Filed 11/09/18 Page 48 of 48 PageID #: 321 SEALED PROCEEDINGS 1 MR. O'NEILL: 2 THE COURT: 3 MR. O'NEILL: 4 THE COURT: 5 Okay. 48 No, not at this time. Okay. Thank you, Your Honor. All right. Mr. Leissner, you have to continue to 6 comply with all of your Pretrial Services's conditions. 7 Okay? 8 Then we are adjourned. 9 MS. KASULIS: Thank you, Your Honor. 10 MR. O'NEILL: Thank you. 11 THE COURT: 12 (Matter concluded.) Have a good day everyone. 13 14 --oo0oo-- 15 16 I N D E X 17 EXHIBITS 18 19 Court's Exhibit Number 1 22 20 21 22 23 24 I ( we) f r o m t h e c e r t i f y r e c o r d / s / t h a t o f D a v i d DA VID t h e f o r e g o i n g p r o c e e d i n g s R. R. Ro y i n i s t h e a c o r r e c t t r a n s c r i p t a b o v e- e n t i t l e d O c t o b e r ROY 25 David R. Roy, RPR, CSR, CCR Official Court Reporter 1 5 , D a t e m a t t e r . 2 0 1 8